For compensation plans adopted by a publicly traded company in the current year, when a CEO's salary exceeds $1,000,000, the employee ______ taxed on the entire amount, and the employer ______ allowed a deduction on the entire amount.

Question

Quizplus · Accepted Answer

The CEO is taxed on the entire amount exceeding $1,000,000, but the employer is not allowed a deduction for the amount that exceeds $1,000,000 according to IRS regulations.

For Compensation Plans Adopted by a Publicly Traded Company in the Current