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  • Help!! California

    could anyone give me information on "Salary Continuation"

    I need to do a set up for my executives ( first time for me)so if anyone has experience on this any information is greatly appreciated

    Thank you
    COLOR=Navy]Peterpam[/COLOR]

  • #2
    What do you want to know about it?
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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    • #3
      this is an added pay to the Executives, I need information on how is this taxed is it payed as regular wages, is it paid out bi-weekly with regular payroll,semi annully?
      COLOR=Navy]Peterpam[/COLOR]

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      • #4
        If it is replacing salary, it is taxed just like regular wages, because it is replacing regular wages. Normally, "salary continuation" is just that; it's paid out just like salary would be, on the regular pay frequency.
        I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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        • #5
          it is not replacing their salary, there is no retirement involved, they will still recieve there regular wages plus the salary continuation,
          COLOR=Navy]Peterpam[/COLOR]

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          • #6
            Excuse me for being dense, but how can you "continue" something that hasn't stopped in the first place?

            You're going to have to provide details of what this is intended to do and under what conditions you do it before I can provide any more assistance.
            I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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            • #7
              well from my understanding this is a Benefit of Life Insurance (BOLI) it is a benefit plan established by the employer fir the benefit of key employees, the employer agress to pay the individula future compensation, usally at retirement, I am told that they are not subject ot FICA, FUTA, Or medicare, any infromation would help
              COLOR=Navy]Peterpam[/COLOR]

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              • #8
                Are you referencing a non-qualified deferred compensation plan where the income is not currently taxable, but does become taxable upon payment? There are specific forfeiture issues that must be in place along with a recordkeeping system for the deferrals. Along with very specific rules on "constructive receipt" and distribution periods.

                I would try to connect with a Executive Compensation consultant at one of the larger HR consulting firms. I was briefly doing this at one about 8 years ago but I have not kept up on the laws/recordkeeping of such plans. There are a lot more details/rules/taxation issues than I can even begin to describe here.

                rr

                eta: the only thing I can find under Google on BOLI is : Bank owned life insurance where the bank takes out a policy where they are the beneficiary...
                Last edited by hr for me; 10-05-2006, 11:08 AM.

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                • #9
                  Yes it is for a non quaified benefit plan, I will try to locate a HR consultant

                  Thx
                  COLOR=Navy]Peterpam[/COLOR]

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                  • #10
                    You might also try the following:
                    http://benefitslink.com/boards/ and search under BOLI. I found quite a few postings there on it.

                    Especially this specific series of postings:
                    http://benefitslink.com/boards/index...opic=32472&hl=

                    rr

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                    • #11
                      Thank you I appreciate your help
                      COLOR=Navy]Peterpam[/COLOR]

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