A deferred compensation plan helps reward employees

分割美元计划 is one of the incentive programs w在这里by the employer and the employee share the premium payments, or the employer pays the entire premium to buy insurance on the employee's life. Usually the employer is guaranteed that, whether the employee lives or dies, it may get back all of its portion of the premium payments.

For the employer, the plan may:

• Provide an incentive for the employee to stay with the employer.
• Provide a way to be selective in rewarding certain key employees.
• Provide a source of liquid funds for the business through policy cash values when the employer owns the policy.

For the employee, the plan may provide:

• Permanent insurance at term rates.
• A hedge against future insurability for life insurance.

另外，这个计划很灵活. The premium may be leveled for the employee, employer, or both.

高管奖金计划

高管奖金计划 is one of the employee incentive programs that provides a way for an employer to help a key employee meet personal life insurance needs. The employer pays the premium on a life insurance policy owned by the key employee. The premium payment (bonus) is treated as additional taxable compensation to the employee and thus is tax deductible for the business. The employer may pay an additional income tax-deductible bonus to offset the increased tax liability to the employee. The "premium bonus" plus the "tax bonus" can result in low, or no personal expense for the key employee's own life insurance.

For the employer, the plan may:

• 帮助留住关键员工.
• Allow the employer to be selective in rewarding certain key employees.

For the employee, the plan may provide:

• Needed personal life insurance.
• A hedge against future insurability.

递延补偿计划

The 递延补偿计划 is a contractual arrangement w在这里by a key employee, usually in a high income tax bracket, will receive a guaranteed number of fixed payments, 从退休开始, in place of current salary increases or cash bonuses.

对于员工而言，可以:

• Allow the employee to remain in a lower income tax bracket.
• 为退休提供资金.
• Provide money for the family in the event of death.

对于雇主而言，可以:

• 帮助留住一名关键员工.
• 吸引优秀员工.
• Be used exclusively for select employees.

In the deferred compensation contract, prepared by an attorney, the employer may agree to:

• Pay the employee a specified salary at retirement for a specified number of years.
• Continue payments to the employee's beneficiary if the retired employee dies before receiving the full number of payments.
• Pay a death benefit to the employee's beneficiary in the event of death prior to retirement.

The employee usually agrees to:

• Remain with the employer until retirement.
• Refrain from competing with the employer after retirement.

Cash value life insurance from State Farm provides a means to provide the cash needed for 递延补偿计划. The policy's cash values can provide needed funding for required payments when the employee retires, and the death benefit can be used if payments are to the employee's beneficiary.