Stock-based compensation: Back to basics

Many companies find stock-based compensation is a great way to attract and retain key employees. Over the past year, many employers focused primarily on changes from the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97. Now that the TCJA dust has settled a bit, it may be a good time for employers to go back to basics and review some important but complex tax rules involving compensatory transfers of employer stock. This discussion summarizes some fundamental income tax considerations for employers related to stock-based compensation under U.S. federal income tax laws. READ MORE

How Nonqualified Deferred Compensation (NQDC) Plans Work

A nonqualified deferred compensation (NQDC) plan is an arrangement that an employer and employee agree to where the employer accepts to pay the employee sometime in the future. Executives often utilize NQDC plans to defer income taxes on their earnings. They differ drastically from qualified plans, like 401(k)s. As you explore how NQDC plans work and how they compare to qualified ones, you may also consider finding a financial advisor who can give you hands-on attention throughout the process. READ MORE