Category: CFO Services
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Understanding IRC §409A: Deferred Compensation Rules Every Employer Should Know
Deferred compensation plans are an important tool employers use to attract and retain talent. They allow employees to earn compensation today but receive it later — often at retirement, separation, or another milestone. But with this flexibility comes significant complexity, especially for nonqualified deferred compensation (NQDC) plans. Enter IRC §409A, enacted in 2004 after the…
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Stock-based Compensation: What to consider?
What is stock-based compensation? Simply put, it’s a method used by businesses to compensate employees for their services. Typically an employer will pay you in cash, however some companies may pay employees in stock for various reasons discussed below. Why compensate with stock? There are advantages and disadvantages to offering stock-based compensation. These (along with…