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Deferred Compensation

Deferred compensation refers to a portion of an employee's pay that is held out and then paid out later. Deferred compensation can be used for various reasons, including as part of a retirement plan, stock options, or certain pension plans. Deferred compensation is often considered part of a benefits package.

What Small and Midsize Businesses Need to Know About Deferred Compensation

Any small business may choose to take advantage of deferred compensation for their employees as part of a benefits package. In terms of a retirement plan, a small business will alocate a percentage of the employee's pay into the retirement plan, and a professional will invest that amount.

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