Employee Compensation and Benefits

Course Description:

  The various ideas, methods, and techniques to optimize the overall compensation package for key employees and principals are examined in this mini-course. Generally, businesses may deduct employees' pay including wages, salaries, and other perks. Certain fringe benefits that can provide an unusually tax-favored manner of supplementing compensation are described and evaluated. In addition, equity participation is explored through stock sales, repurchase agreements, incentive stock options, ESOT's, stock options, and bonuses. Finally, the deferred compensation arrangements are investigated. The goal of this mini-course is to provide participants with a working knowledge of types of compensation necessary to structure a compensation package minimizing tax liabilities and cost.

Learning Objectives:

Upon successful completion of this course, participants will be able to:

• Identify the common-law rules and factors used to determine whether a person is an employee or independent contractor.
• Recognize employee and officer compensation deductibility factors and the related employment taxes and reporting obligations to ensure compliance with regulations. 
•    Identify fringe benefits, specifying those that provide deductible incentive-based employee compensation.

• Specify the equity incentive opportunities available to employers, showing the variety, tax treatment, and use of stock plans.

• Recognize the use of deferred compensation agreements to attain compensation and retirement objectives.