Capterra Glossary
Deferred Compensation
Deferred compensation refers to a portion of an employee's pay that is held out and then paid out later. Deferred compensation can be used for various reasons, including as part of a retirement plan, stock options, or certain pension plans. Deferred compensation is often considered part of a benefits package.
What Small and Midsize Businesses Need to Know About Deferred Compensation
Any small business may choose to take advantage of deferred compensation for their employees as part of a benefits package. In terms of a retirement plan, a small business will alocate a percentage of the employee's pay into the retirement plan, and a professional will invest that amount.