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:

Promotable Now

A term used to describe an employee who is currently ready or eligible to move up to a higher position within an organization.

Replacement Planning

A process in HR management that identifies and develops internal candidates to fill key positions within the organization in case they become vacant.

Succession Management

Strategic planning to identify and develop individuals within an organization to fill key leadership positions in the future.

Instructional Techniques

Methods or strategies used by educators to deliver content and facilitate learning effectively in educational settings.