Compliance Strategy. Section 409A of the Code imposes an additional twenty percent (20%) tax, plus interest, on payments from “non-qualified deferred compensation plans.” Certain payments under this Agreement could be considered to be payments under a “non-qualified deferred compensation plan.” The additional twenty percent (20%) tax, and interest, does not apply if the payment qualifies for an exception to the requirements of Section 409A or complies with the requirements of Section 409A. Company currently believes that the cash payments and benefits due pursuant to this Agreement either comply with the requirements of Section 409A or qualify for an exception to the requirements of Section 409A. Company intends that the payments to which Executive is entitled upon Executive’s death or Disability under Sections 5(a)(1), (2) and (3) qualify for the short-term deferral exception to Section 409A of the Code. In addition, Company intends that the payments made due to Executive’s termination without Cause under Sections 6(c) and (d) and 8(b)(1) and (2), or for Good Reason under Sections 7(c) and 8(b)(1) and (2), qualify for the short-term deferral exception to Section 409A of the Code as described in Treas. Reg. § 1.409A-1(b)(4)). Company further intends that the group health and dental insurance benefits payable under Sections 6(e) and 8(b)(3) during the period of time during which Executive is entitled to continuation coverage under Section 4980B of the Code (COBRA) if Executive elected such coverage and paid the applicable premium qualify for the separation pay plan exception to Section 409A of the Code. Company has concluded that the life, disability and accident insurance benefits payable under Sections 6(e) and 8(b)(3) may be subject to the requirements of Section 409A of the Code. To ensure that such payments comply with Section 409A of the Code, the payments are payable at a specified time or pursuant to a fixed schedule within the meaning of Treas. Reg. § 1.409A-3(i)(1)(iv) and the amounts reimbursed in one taxable year will not affect the amounts eligible for reimbursement by Company in a different taxable year. All reimbursements must be made no later than December 31 of the calendar year following the calendar year in which the expense was incurred. Executive may not elect to receive cash or any other benefit in lieu of the benefits provided by Sections 6(e) and 8(b)(3).
Compliance Strategy. 1. Please state the various initial method(s) and practice(s) the County will use in response to compliance inspections that result in non-compliance. (Blatant violations will be referred to MPCA as soon as possible in accordance with Appendix C.): Include corrective actions with completion deadlines in the inspection results notification letter. Issue a Letter of Warning (LOW) or a Notice of Violation (NOV) that will include corrective actions and deadlines. Issue an interim permit that includes timelines for corrective actions. Other (describe below):
Compliance Strategy. Company has concluded that the severance payment provided by Section 4(a), the treatment of previously reimbursed relocation expenses provided by Section 4(d) and the retention of equipment benefit provided by Section 4(e) either do not constitute deferred compensation subject to the requirements of Section 409A of the Internal Revenue Code of 1986 (the “Code”) or qualify for the short-term deferral exception to the requirements of Section 409A of the Internal Revenue Code, as such exception is described in Treas. Reg. § 1.409A-1(b)(4). Company further has concluded the reimbursement of Moving Costs provided by Section 4(d) qualifies for the separation pay exception to the requirements of Section 409A as such exception is described in Treas. Reg. § 1.409A-1(b)(9) and the health insurance benefits provided by Section 4(b) comply with the requirements of Section 409A pursuant to Treas. Reg. § 1.409A-3(i)(1)(iv). Further, Company has concluded that the stock bonus provided by Section 4(e) and the extension of the exercise period for outstanding options provided by Section 4(f) are not subject to the requirements of Section 409A.
Compliance Strategy. Company has concluded that the severance payment provided by Section 3(a) qualifies for the short-term deferral exception to the requirements of Section 409A of the Internal Revenue Code of 1986 (the “Code”), as such exception is described in Treas. Reg. § 1.409A-1(b)(4). Company further has concluded that the insurance benefits provided by Section 3(b) either do not constitute deferral compensation or comply with the requirements of Section 409A pursuant to Treas. Reg. § 1.409A-1(b)(9)(iii).
Compliance Strategy. 1. Please state the various method(s) and practice(s) the County will use in response to compliance inspections that result in non-compliance:
