Bill May Cap
Non-Qual Deferred Comp Accrual At $1 Million
BY
ARTHUR D. POSTAL
Washington Bureau -- NU Online News Service, Jan. 17, 2007, 5:32 p.m.
EST
The
Senate Finance Committee today approved with little debate a proposal
that would sharply limit executive deferred compensation plans. Insurance
industry groups are saying the non-qualified deferred comp, which
has been added to the Senate’s minimum wage bill, could have
a big effect on the tax-deferred compensation packages that life insurance
underwriters and life insurance agents sell. The House passed its
minimum wage bill, H.R. 2, last week. Over in the House, Rep. Charles
Rangel, D-N.Y., has said he does not want to see colleagues add tax
provisions to the minimum wage bill. Members of the Senate Finance
Committee do want to add tax breaks, and they have been looking for
ways to offset the cost of the tax breaks.
The
non-qualified deferred comp amendment would:
- Change Internal
Revenue Code Section 409A to impose a dollar cap on the annual
accrual of “nonqualified deferred compensation that is the
lesser of $1 million or the individual’s average annual compensation
determined over 5 years.”
- Failure to
satisfy the cap would trigger ordinary income tax plus a 20% additional
tax.
- Change the
Section 162(m) (“million dollar deduction" limit) to
treat any former employees (and beneficiaries) as continuing to
be covered by the Section 162(m) limit in the future. The change
would apply the Section 162(m) limit to executives who left their
current employers.
The
proposed change in federal tax policy would affect top executives
at hundreds of corporations and would raise taxes on some of the nation's
wealthiest workers by about $806 million over 10 years, according
to the Congressional Joint Tax Committee. The proposed non-qualified
deferred comp change is included in a package of tax shelter and tax
loophole changes that could raise federal tax revenue by about $8.3
billion over a decade, according to the Joint Tax Committee.
By
Kate Lorenz, CareerBuilder.com Editor
There
you sit, waiting to be ushered into your interview. Your suit is pressed,
your shoes are shined and your resume is top notch. But, as the minutes
tick past, you feel a mounting sense of doom as you anticipate the
questions that will cause a deafening silence during the interview.
Want
to avoid an interview disaster? Check out these tough interview questions
and their suggested responses:
Q:
"What are your weaknesses?"
"Don't take this literally and go into a detailed explanation
of your weaknesses," says John Challenger, CEO of global outplacement
consultancy Challenger, Gray & Christmas, Inc. He advises taking
a potential weakness and putting a positive spin on it.
A:
"I am very detail oriented and in some industries that may not
be a good fit. But for this accounting position, I think this trait
truly will help me excel."
Q:
"How would you solve this problem?"
Challenger says that these kinds of hypothetical questions can be
risky. First of all, they may not like your answer; if they do like
it, there's a chance they will steal it. That's what happened to June
Sullivan when she interviewed for an activity director's position
at a long-term care facility. When asked about marketing ideas, June
laid out her entire plan. Well, she didn't get the job, but later
recognized some of her strategies being used by the facility.
A:
"I think you can increase product awareness by enacting some
marketing strategies that could employ advertising, direct mail or
media placements."
Q:
"Why did you leave your last job?"
Again, Challenger suggests presenting everything in a positive light.
An interview is not the time to dish the dirt on your previous employer.
A:
"The company just wasn't a good fit for my innovative personality.
But what I learned is that organizations have distinct personalities
just like people do. Now I know to concentrate my job search on companies
who value independent thinking and alternative methods."
Q:
"Why do you want to work here?"
Questions like these require you to do your homework before the interview.
A:
"I want to be a part of a global company that last year alone
invested $1.4 million in research and development of eco-friendly
industrial processes."
Q:
"Tell me about yourself."
This is a chance for you to shine -- but not to tell your life history.
Begin by listing your traits and accomplishments you feel are relevant
for the position. Don't delve into personal information unless it
relates to the position you're vying for.
A:
"I am very creative and resourceful. I have been a sales
manager for the past five years and used my creativity to devise unique
incentives to keep the sales representatives motivated. Because of
this my sales team earned numerous company awards."
Q:
"Tell me about the worst boss you ever had."
Take the high road and don't give into the temptation to vent any
past frustrations.
A:
"While none of my past bosses were awful, there are some
who taught me more than others did."
Q:
"What are your goals?"
This is best answered by reiterating your objective statement on your
resume. Keep your aspirations to be a vice president of marketing,
own your own company or retire at 40 to yourself.
A:
"I want to secure a civil engineering position with a national
firm that concentrates on retail development. Ideally, I would like
to work for a young company, such as this one, so I can get in on
the ground floor and take advantage of all the opportunities a growing
firm has to offer."
