Which of the Following Statements Is Incorrect Regarding Unfunded Deferred

question 29

Multiple Choice

Which of the following statements is incorrect regarding unfunded deferred compensation plans?

• A)The employee is not taxed on the compensation amount when it is deposited in an escrow account.
• B)An accrual-basis employer can deduct the compensation amount when it is accrued in the year service.
• C)An employee is taxed when the amount is actually paid or made available.
• D)A 20% excise tax will apply if the employee can voluntarily elect to receive payment early.

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Definitions:

Tertiary Prevention

A type of prevention practised after suffering or disability from the disease is being experienced, with the goal of preventing further deterioration. See also primary prevention and secondary prevention.

Public Health Approach

An approach to community psychology characterized by the following steps: (1) identifying a disease and developing a reliable diagnostic method (descriptive epidemiology); (2) developing a theory of the disease’s course of development on the basis of laboratory and epidemiological research (analytic epidemiology); and (3) developing and evaluating a disease prevention program (experimental epidemiology). The thrust of the approach is to reduce environmental stressors while enhancing people’s capacities to withstand those stressors.

Diagnosis

In the realm of medicine and abnormal psychology, a determination or identification of the nature of a person’s disease or condition, or a statement of that finding. A diagnosis is made on the basis of a diagnostic system.

Development Taken

Refers to the process and progress made in a particular area, project, or aspect.