July 26, 2018
The reporting of nonqualified deferred compensation plans is complex and depends on several factors, including contributions, vesting and payments, as well as the different rules that apply for income tax and employment taxes (FICA/FUTA). Because of this complexity, there are few resources available that succinctly describe the proper federal tax reporting (Form W-2 and Form 1099-MISC) of contributions to and payments from these plans.
Stevens & Lee has prepared comprehensive yet understandable charts (available at the link below) to assist employers and payroll vendors in properly following the IRS rules for the reporting of these payments. Two charts are available:
- Defined contribution-type nonqualified plans (like an excess 401(k) plan)
- Defined-benefit-type nonqualified plans (like a SERP)
If you have any questions, please contact Jim Longacre at 610.478.2293 or jbl@stevenslee.com.
Related Attorney:
James B. Longacre
This News Alert has been prepared for informational purposes only and should not be construed as, and does not constitute, legal advice on any specific matter. For more information, please see the disclaimer.