Definition of compensation in an EBP primer

Compensation is vital to employee benefit plans, directly influencing contributions, benefits, and tax treatment. The “Definition of compensation in an employee benefit plan” primer highlights components of compensation, plan document definitions of compensation, and tax definitions of compensation. The primer also displays a side-by-side comparison of the various compensation definitions. A solid understanding of compensation definitions is vital for accounting and finance professionals involved in the administration or oversight of employee benefit plans.