In the realm of business management, structuring a comprehensive and tax-efficient compensation package for key employees and principals is a complex yet crucial task. This mini-course tackles this challenge by examining a range of ideas, methods, and techniques to optimize compensation packages. Understanding that businesses can deduct various forms of employee pay, including wages and perks, the course delves into tax-favored fringe benefits that supplement compensation effectively. It goes further to explore equity participation through diverse avenues like stock sales, repurchase agreements, incentive stock options, and ESOT's. The course also investigates the intricacies of deferred compensation arrangements. Its primary objective is to equip participants with the knowledge to craft compensation packages that minimize tax liabilities and costs, ensuring compliance with regulations. By mastering these concepts, participants will gain valuable insights into structuring effective compensation strategies that align with both the employee's and the company's financial goals.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Identify the common-law rules used by the IRS to determine whether a person is an employee for purposes of FICA, FUTA and federal income tax withholding.
Recognize employee and officer compensation deductibility factors and the related employment taxes and reporting obligations to ensure compliance with regulations.
Identify fringe benefits specifying those that provide deductible incentive-based employee compensation.
Specify the equity incentive opportunities available to employers showing the variety, tax treatment, and use of stock plans.
Recognize the use of deferred compensation agreements to attain compensation and retirement objectives.
Major Topics
Employee Compensation and Benefits
Fringe Benefits
Equity Participation
