January 2016
Intermediate to advanced
480 pages
20h 58m
English
2 Define executive status.
It is important to define executive status because it is not an arbitrary designation. In fact, the Internal Revenue Code (IRC), which is the tax code of the United States, provides criteria to guide us in the definition of executives as these are key employees and highly compensated employees.
Virtually all the components of executive compensation plans provide favorable tax treatment for both the executive and the company. Who are executives? From a tax regulation perspective, the IRC recognizes two groups of employees who play a major role in a company’s policy decisions: highly compensated employees and key employees. The IRC uses “key employees” to determine the necessity ...