税务处理第 464 / 716 题
An executive bonus (Section 162) plan generally works by having:
a.All taxes deferred indefinitely for both parties
b.The employer pay (bonus) the premium on a life policy the executive owns, deductible to the employer and taxable to the executive
c.The employer lend money that must be repaid with interest
d.The executive pay every premium out of pocket from after-tax salary, with the employer simply collecting and forwarding the premium payments
解析
In a Section 162 executive bonus plan, the employer pays the premium on a personally owned life insurance policy for a key executive; the employer deducts the bonus as compensation, and the executive reports it as taxable income but owns the policy and its cash value. The executive does not bear the full cost alone, it is a bonus rather than a loan, and taxes are not deferred, the bonus is currently taxable to the executive. Simplicity and employer deductibility make this a popular executive benefit.
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同考点相关题目
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审核人 John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — 核实)