LAWFUEL – Law Press Release Service – The American Jobs Creation Act of 2004 included significant changes in the tax rules regarding deferred compensation. In the past, deferred compensation primarily referred to employees who postponed receiving part of their compensation until a future date and weren’t taxed on the income until it was collected. But the new Code Section 409A, in particular, represents a broad departure from prior law by classifying a host of additional benefits as deferred compensation.
“It is significantly reshaping the way that companies structure and dole out compensation and other benefits to employees and other service providers,” explains Mark Saulino, a tax partner in Alschuler Grossman Stein & Kahan LLP’s Transactional Department.
