Wages for health insurance

[Guest RACHELP]

Retired doc continues to earn de minimis salary so he gets health insurance from the Employer. His accountant tells me he also has certain amount of 'deferred compensation' and will for a certain period of time.

He does not and will not provide services to the Employer.

Is 'deferred comp' in the situation described show up on a W2?

Thanks

[Guest gdburns]

If he gets a salary or wages, he has to be an employee and has to provide services.

Does the Plan and the health insurance allow retirees? If retirees are allowed, retirees are not employees and do not get salary or wages. If retirees are not allowed, it should be better to establish either a retiree plan or a retiree MERP rather than have the current scheme.

Since there is already questionable classification, I suspect that there might be questionable terminolgy regarding "deferred compensation".

Exactly what is meant by "deferred compensation"? Is this from a Pension Plan, a 401(k) or a NQ Plan of some sort? I have also seen the term used to describe a Salary Continuation Plan.

I suggest that you do not use another person's definitions and interpretations. See the documents for yourself.

[Guest mjb]

With regard to the question that was posted, unfunded deferred comp is reported on a W-2 in the year that is paid or made available to an employee by the employer. (Note: Under 409A deferred comp that earned in 2006 will be reported on the W-2 even if not paid.) Deferred comp earned by independent contractors will be reported on a 1099 form in the year the deferred comp is paid or made available. Unfunded deferred comp that is not paid or made available in a tax year is not included as wages or earnings on a 1099 or w-2.

As to the other issues in the response there is no requirement that an employee perform services in order to receive a salary. Employers frequently pay employees to stay at home and not show up for work (Terrill Owen). Other employees receive retainer/standby pay which requires that they report for work when requested by the employer.

[namealreadyinuse]

mjb may be correct, but without knowing more facts it doesn't sound good to me. Is the insurance company on board witht this "arrangement"? Could be insurance fraud or a MEWA if there is no basis for the relationship.

[GBurns]

Being on retainer/standby is performing a service that is required by the employer.

Terell Owen is still performing the services required by his contract namely the duty assigned by the employer, whether sitting on a bench, actively being on the field, or staying away whether at home or a hospital bed recuperating.

While on paid vacation, an employee is still providing the services required by the employer, yet is "not at work".