IRS Proposes Regulations on FICA Taxation of Deferred Compensation Plans

Summary

The Internal Revenue Service (IRS) has released proposed regulations under section 3121(v)(2) of the Internal Revenue Code of 1986, clarifying when amounts deferred under or paid from certain nonqualified deferred compensation plans are considered 'wages' for FICA tax purposes, affecting taxpayers who must comply with this provision added to the Code by section 324 of the Social Security Amendments of 1983.