Course Number: | 12 |
---|---|
Category: | Executive Compensation |
Field of Study: | Taxes |
Audience: | Executives, HR Managers, Compensation Managers, Compensation Analysts, HR Generalists |
Level of Difficulty: | Advanced |
Delivery Method: | QAS Self Study |
Prerequisites: | Moderate algebraic training |
Advanced Preparation: | None |
SHRM BASK: | As defined by the SHRM Body of Applied Skills and Knowledge (BASK), this self-study course relates to competencies in Business Analysis with functional areas in Total Rewards and U.S. Employment Law and Regulations. |
Overview | The U.S. Internal Revenue Service (IRS) monitors executive compensation in closely held companies to ensure that any pay that is deducted meets the tests for reasonable compensation. This course looks at IRS compensation challenges that arise when shareholder-employees improperly reduce their taxes through underpayment or overpayment of compensation, depending on whether the company is a sole proprietorship, partnership, small business, limited liability company, subchapter S corporation, or C corporation. We will also look at reasonable pay in tax-exempt nonprofit organizations. The course will identify how to establish reasonable compensation and examine an additional standard that some courts have applied, the independent investor test. We teach reasonable compensation analyses based upon executive compensation salary surveys, proxies, and IRS form 990’s. |
Learning Objectives: |
|
Credit & Professional Continuing Education Information: |
|
Additional Information: | |
*The Course Credit List displays credits and credit types offered by location. |
ERI Economic Research Institute is recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CP® or SHRM-SCP®