EXECUTIVE & DEFERRED COMPENSATION
True compensation is measured not by what one makes, but by what one keeps. Typically, compensation, interest, dividends, sale proceeds, etc. are taxed as soon as these are earned. However, by means of “qualified” and “non-qualified” deferred compensation plans, taxation of certain invested wages, as well as earnings on these amounts, may be postponed until funds are actually received, either upon retirement or other occasion. Likewise, our tax laws provide that a variety of benefits furnished by an employer to an employee, including group term insurance and medical care plans, are not subject to taxation.
The ability to obtain essential services and build investment capital with pre-tax dollars can have a profound positive impact upon the ultimate size of an employee’s investment portfolio.
In structuring a compensation and benefits plan, our firm realistically analyzes those tax incentives which are potentially available to a business, its owners, executives and employees. The devices which best combine tax savings, utility to executive and staff employees, flexibility and economic growth are integrated into a comprehensive benefit and compensation plan.
The ability to obtain essential services and build investment capital with pre-tax dollars can have a profound positive impact upon the ultimate size of an employee’s investment portfolio. As such, the well considered and implemented compensation and benefit plan can be the cornerstone of employee morale, security and efficiency and can contribute significantly to the success of the business enterprise.
For more information concerning our executive & deferred compensation services, please contact us at 717-534-9993 or use the form on our Contact page.