Guest Aaron Martin Posted August 11, 2011 Share Posted August 11, 2011 I am looking for comments on when FICA taxes are payable if a bonus is earned in the current year but paid in the following year with the 2 1/2 month window. Example: 100 dollar bonus vests (no risk of forfeiture) on 12/31 but is not paid by the company until March 3rd of the following year. A participant elects to defer $50 of the bonus into the nonqualified deferred compensation plan and receive the remaining $50 dollars in cash. Are FICA taxes on the $50 deferred in the plan payable on 12/31 versus March 3rd? Link to comment Share on other sites More sharing options...
ETA Consulting LLC Posted August 11, 2011 Share Posted August 11, 2011 No. CPC, QPA, QKA, TGPC, ERPA Link to comment Share on other sites More sharing options...
Guest Aaron Martin Posted August 11, 2011 Share Posted August 11, 2011 No. I read the regs as if the special timing rules would apply because the $50 deferred into the planwould be paid beyonnd the 2 1/2 month window, i.e., retirement. Thus, causing FICA taxes due on 12/31. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now