If properly constructed, bonus arrangements can result in tax deferral for employees.

Name: If properly constructed, bonus arrangements can result in tax deferral for employees.
Brand: Quizplus
Rating: 4.8 (56 reviews)

Question

Quizplus · Accepted Answer

Bonus arrangements, such as deferred compensation plans, can allow employees to defer taxes on their bonus income until a later date, resulting in tax deferral. However, the arrangement must be structured properly to comply with tax laws and regulations.

If Properly Constructed, Bonus Arrangements Can Result in Tax Deferral