Parachute Strategies Save Employee Taxes, Employer Deduction, Practitioners Say

Overview


Andrew Liazos told a webcast focused on executive golden parachute plans that ways to avoid negative tax impact for them include “capping the payment at the statutory level to avoid triggering the excise tax or cutting back the payment to save taxes for the executive and save the company a significant tax deduction.” Mr. Liazos cautioned that some approaches may not work in every situation, adding that the best after-tax provisions allow for a cutback to avoid the 20 percent tax, but only if the employee would be better off after-tax with a cutback instead of receiving the full amount. Read the full article.