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Are You Handling Your FICA Taxes on Deferred Compensation Properly?
Benefits and Compensation with John Lowell
Jan. 4, 2016
"In defined benefit (DB) SERPs and Restoration Plans ... there are multiple ways of handling the FICA situation. Most prominently, the sponsor may calculate (and remit) FICA taxes when they are reasonably ascertainable ... or by early inclusion which essentially means that FICA is calculated and paid annually. Early inclusion is sometimes more beneficial than waiting until retirement, but it is also more administratively complex.... Suppose your plan specifies early inclusion and you've not been doing that, do you have a problem? You might."
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