Common use of Includible Compensation Clause in Contracts

Includible Compensation. (a) Except as provided below in the case of independent contractors, Includible Compensation means (check one): X Safe Harbor Compensation as described in Code section 415(c)(3) and the regulations promulgated thereunder. □ Code section 3401(a) wages (as modified by Code section 415(c)(3) and the regulations promulgated thereunder). □ Information required to be reported under Code sections 6041, 6051, and 6052 (e.g., the “Wages, Tips and Other Compensation” box on Form W-2) (as modified by Code section 415(c)(3) and the regulations promulgated thereunder). □ Other (please specify a definition that complies with the requirements of Code section 415(c)(3) and the regulations promulgated thereunder (including any optional inclusions/exclusions under Code section 415(c)(3)): The Includible Compensation of independent contractors eligible to participate in the Plan pursuant to an election under Item 5(b) shall be determined in accordance with the special rules for self-employed individuals in Code section 415(c)(3)(B) and the regulations promulgated thereunder. (b) Includible Compensation □ does / X does not (check one) include amounts treated as “deemed 125 compensation” because of the Employer’s requirement that its Employees participate in an Employer-sponsored health insurance program unless they state that they are provided health care coverage elsewhere. Note: Pursuant to the Heroes Earnings Assistance and Relief Tax Act of 2008, amounts paid as differential military pay are included in the Internal Revenue Code definition of includible compensation.