An employee is taxed on deferred compensation either when the compensation was received or
was subject to the employee's control.

Question

Quizplus · Accepted Answer

An employee is generally taxed on deferred compensation when it is received or no longer subject to a substantial risk of forfeiture, even if it has not yet been paid out to the employee. Generally, deferred compensation is subject to taxation when it vests, or when the employee no longer faces a risk of losing the benefit.

An Employee Is Taxed on Deferred Compensation Either When the Compensation