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Former Member

Has anyone taken advantage of the Rule of Administrative Convenience?

I have a client who is investigating this with our long-term incentive payment (LTIP) and stated: The IRS allows the rule of administrative convenience to take place for the time-based LTIP, which allows the FICA obligation to be calculated on any date that is later than, but within the same calendar year what the recipient FICA Taxable Income (which will include the LTIP TBRS Taxable income), and FICA tax should be (Social Security portion has a taxable income limit, but not Medicare portion). Therefore, the entire portion that vests during the year can be FICA taxed all at once, no later than December 31.

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