California Employment Development Department Severance Pay, Dismissal or Separation Pay Severance pay is not wages for unemployment insurance purposes. There is no specific code section in the California Unemployment Insurance Code which declares that severance pay is not wages. We cite Section 1265 when we state that severance pay is not wages. The authority for […]
Category: Benefits
Section 457 deferred compensation plan
A “section 457 plan” is a deferred compensation plan that is maintained by an eligible employer and that complies with the specific requirements set out in IRC Section 457(b). An eligible deferred compensation plan under IRC Section 457(b) is an agreement or arrangement (which may be an individual employment agreement) under which the payment of […]
Employee benefit plans – Rule 701
Per the SEC Rule 701 exempts certain sales of securities made to compensate employees, consultants and advisors. This exemption is not available to Exchange Act reporting companies. A company can sell at least $1 million of securities under this exemption, regardless of its size. A company can sell even more if it satisfies certain formulas based on […]