The first group oversees the efforts to collect data and build the ABC computer model. The second helps with the technical work required to link the ABC model with the general ledger, the manufacturing-planning system, and other support systems. Both groups work closely with the managers of the operation—to tap their knowledge and to instill in them a sense of ownership of both the rollout and the new ABC system. The courses in the first group, which introduce the basic concepts of ABC, are for employees at a wide range of levels—from top management down to some hourly workers. The half-day courses explain what ABC is, how it differs from the traditional cost-accounting system, and what Chrysler hopes to get out of it. The message, reinforced with examples, is that ABC’s purpose is to help employees make better decisions, not to get them to work harder or to eliminate their jobs. 12.7 million in cost savings, cost avoidance, and increased revenues—more than 14 times its investment in the program.

You can do this by multiplying the cost driver rate by the number of cost drivers per cost pool per product. Now that we have our cost driver rate, we can finally compute the overhead cost of each product. As you can see, the overhead cost for each cost pool is divided by its respective total cost driver. However, a minor under the age of twenty-one years MAY enter a liquor package store, without a parent or guardian, to lawfully purchase a non-alcoholic beverage product. The minor cannot remain on the premises for a period longer than reasonably necessary to make the non-alcoholic beverage product purchase.

Strategy and management consultants

If there’s any confusion or misunderstanding regarding the rapidly-changing employment legislation in California, it’s wise to consult a business or employment law attorney. Even unintentional infractions can lead to fines or, albeit in rarer instances, litigation. This eBook, Offered Free by Canto, outlines everything you need to know to manage your digital brand identity – with tips to create a consistent brand experience across every touchpoint. Device used and the content format of the answer (including audio/voice, image, and/or video).

• Here is the average North American CPM for network TV in contrast with the CPM for other online and offline marketing mediums, based on this TV ad pricing chart from the marketing experts at Top Draw.
• However, it’s worth noting that this test is by no means specific to the Golden State.
• Jaw-dropping TV advertising costs go well into the millions for high-ticket Super Bowl commercials, but those notoriously expensive ads don’t reflect the average cost of airing commercials on television.
• If you decide to go this route, we recommend you talk to a payroll specialist.
• Finally, the parts go to the shipping area to be sorted, packed and loaded into trucks for delivery to customers.
• As bad as these statistics on business survival are, some industries are worse than others.

Without being face-to-face, it can be harder to understand the wants, needs and concerns of your ecommerce customers. Although modern ecommerce is increasingly flexible today, it still has its own setbacks.

Is RBS training and certification mandatory to serve alcohol in California?

With 90% of B2B customers expecting B2C-like digital experiences, B2B companies must work to improve their customer experiences online to catch up with B2C companies. This includes creating an omnichannel experience with multiple touchpoints and using data to create personalized relationships with customers. Slowly, small business owners are launching ecommerce stores and diversifying their offerings, reaching more customers and better accommodating those who prefer online/mobile shopping. C2A is similar to B2A, but instead, consumers sell products or services to an administration. C2A can include online consulting for education, online tax preparation, etc.

A smaller market or lesser comparative demand are some of the reasons. For example, Christmas sweaters are mostly sold during the season and not very much before or after that. Lisa can neither neglect such sweaters, nor can she make much profit when not in season. Here, the customers are the ones which turn up once in a while and make a purchase. On the other hand, this can also include frequent customers which make a lot of small purchases.

What about consultant firms?

In 1993, the Jurmains were both unemployed—Rick had been laid off by General Dynamics Corp., and Mary by the San Diego Gas and Electric Company. While they were watching the show about teenagers and flour sacks, they were living off a loan from her father and the returns from a timely investment in coffee futures. Rick recalls that the idea for a method of creating BTIO came to him while “I was awake in bed, worrying about being unemployed.” He was struggling to find a way to feed his What Does ABC Mean To Modern Day Small Business? family. He had to make the first forty simulators himself, and at the end of the first summer, BTIO had received about four hundred orders—a promising start, perhaps, but, at $250 per baby , not exactly a windfall. “We were always about one month away from bankruptcy,” recalls Mary. If the employee has a valid RBS certification in the RBS Portal, they do not need to get certified again. RBS certification is valid for three years and applies to the person, not a specific employer.

ABC analysisis derived from the term “The Pareto Principle” named after an Italian economist Vilfredo Pareto, also called 80/20 rule. This principle suggests that 80% of the total output is generated only by 20% of the valuable efforts. Thus, your implementation will culminate in greater profitability in the middle and long term through a detailed vision of organizational processes and will also result in an increase in your company’s competitiveness.

Does ABC share or sell my personal information?

A series of advantages come from a company’s implementation of ABC costing which go beyond the accuracy of the definition of the allocation of costs of products, services, clients and channels. Cost accounting is a form of managerial accounting that aims to capture https://personal-accounting.org/ a company’s total cost of production by assessing its variable and fixed costs. Finally, ABC alters the nature of several indirect costs, making costs previously considered indirect—such as depreciation, utilities, or salaries—traceable to certain activities.

• Activity-based costing, also known as ABC, deals with this problem.
• The ABC test is partially based on how the IRS classifies workers, so even if you don’t hire California based freelancers, listen up.
• Much of the new investor group is local and made up of former executives with significant experience in Software-as-a-Service and Business-to-Business relationships.
• The law expressly states that non-compliance by either licensees or servers is not a criminal violation .
• Activity-based costing is used to get a better grasp on costs, allowing companies to form a more appropriate pricing strategy.
• Lutz, who had championed the platform teams and was the driving force behind the decision to structure the whole company around processes, became the leading advocate for using ABC to help with the transformation.

With ABC analysis, the company will easily be able to strategize the costs of the products and then accordingly align them into different categories. More the demand for a product, the wider will be the chances to increase the rates by the seller. Activity cost drivers are used in activity-based costing, and they give a more accurate determination of the true cost of business activity by considering the indirect expenses. This costing system is used in target costing, product costing, product line profitability analysis, customer profitability analysis, and service pricing. Activity-based costing is used to get a better grasp on costs, allowing companies to form a more appropriate pricing strategy. The cost driver rate, which is the cost pool total divided by cost driver, is used to calculate the amount of overhead and indirect costs related to a particular activity.

I was previously on ABCs RBS Trainer List Do I need to re

Each of these time frames may require you to consider different scenarios. The often times difficult Chapter 11 bankruptcy that traditionally favored larger companies is now available for small businesses through The Small Business Reorganization Act. Allows us to help you build a comprehensive strategy to navigate the process with the help our recognized team. Unlike bankruptcy, the ABC liquidation process does not order an automatic stay of collection attempts, and it doesn’t allow companies to discharge debt. However, the assignee is one of the major reasons businesses choose an ABC over bankruptcy. Your company, with our guidance and support, selects a professional assignee with years of experience liquidizing assets and running businesses.

• For instance, a non-profit may be way more successful with Facebook posts while an accounting firm would be more so on LinkedIn, or vice versa.
• Better costing and quoting are not, however, the only features of ABC that improved the company’s profitability.
• In a 2020 study, Private Equity Info determined the top industries for private equity interest are manufacturing, technology, health care, construction, and logistics.
• They apply to companies of all sizes and business models, and help in the creation of a budget based on activities that promotes greater cost control and profitability for your organization.
• Once you understand your customer and what she expects from your voice-enabled device, create your brand’s voice character.Google’s Wally Brill refers to this as “developing a suit of clothes for your voice character.

Alcohol distributors who provide trainings on how to feature products for marketing purposes. The requirements of AB 1221 supersede prior training and certifications. The third alternative to liquidating your own business or filing for bankruptcy is to follow a procedure called an “assignment for the benefit of creditors,” or ABC. Here you work with one of the many ABC companies or law firms that specialize in liquidating insolvent businesses. Basically, the ABC company will liquidate your assets and pay off your creditors , while you and your co-owners move forward with your lives.

Others may borrow through their personal credit cards, though quite often, high interest rates make this approach unattractive or too expensive for the new business to afford. ABC continues accepting and processing RBS training provider applications.

For example, category A products will be counted quarterly, as they are much more relevant and valuable, category B products can be counted twice a year, and in a similar fashion, category C products can be counted once in a year. Inventory optimization is the most crucial reason why ABC inventory analysis is preferred by many businesses. To organize and segregate the products in the inventory as per their revenue and importance.

What Industries Are Small Businesses In?

Learn more about this rising business model and which brands excel at it. Pre-pandemic, ecommerce was growing year-over-over, but lockdowns around the globe put online efforts into overdrive. Overall, we have to remember that ecommerce is still fairly new in the big picture of retail. The future holds endless opportunity, but its success and continuation will depend largely on buyers’ preferences in the future. As sales increase, brands can easily scale up their operations without making major property investments or hiring a large workforce — this means higher margins overall. In 2021, over 2.14 billion people worldwide were estimated to shop online, up from 1.66 billion global digital buyers in 2016. Many social media platforms now offer ecommerce features, such as in-app checkout, shoppable posts and “Buy Now” buttons that take users directly to a brand’s product page.

This methodology develops tracing and allocation models that identify the allocation of costs related to each activity with precision as well as how they affect your company’s profitability. Eliminating these practical implementation problems, the MyABCM product suite is the global leader in cost management solutions. With its multidimensional analyses, organizations can use it to model, analyze, and create simulations with great flexibility and security providing full integration with the organization’s corporate systems. Many companies already possess a costing mechanism that uses spreadsheets. Others try to customize their ERP or even believe that BI can solve cost management. The description of the specifics of each process and its costs makes a multidimensional analysis with a panoramic focus on the costs of each activity possible. In this way, greater than expected costs can be identified and the budget can even be revised to eliminate expenses that are revealed to be greater than necessary.

But as the rollout began to pick up steam over the next year, the team’s full-time staff was increased to 20. To reinforce the message that the motive for installing ABC was to help the managers run their operations better, the team’s membership also was broadened to include people from manufacturing, engineering, and information systems. The team’s composition certainly helped the ABC program achieve the high level of acceptance that it has won throughout the company. As Lutz had anticipated, once the market had rebounded, employees questioned why the company needed to change at all. Furthermore, with all plants operating at full tilt, line and middle managers questioned whether they had the time to collect the necessary data. Many employees also feared that an unspoken motive for introducing ABC was to eliminate jobs. Some of the corporate controller’s staff and some operations managers were equally unenthusiastic.

The facts are the same as in Example 4, except that Employee B may elect to take the benefit in the form of a life annuity of $50,000 per year . The facts are the same as in Example 6, except that the annual increase or decrease with respect to 50 percent of the employee’s account is equal to the rate of total return on the specified aggressive growth mutual fund and the annual increase or decrease with respect to the other 50 percent of the employee’s account is equal to the increase or decrease in the Standard & Poor’s 500 Index. Employer Q establishes a plan under which bonuses based on performance in one year may be paid on February 1 of the following year at the discretion of the board of directors. The board of directors meets in January of each year to determine the amount, if any, of the bonuses to be paid based on performance in the prior year. Thirty percent or more of one corporation’s employees are concurrently employees of the other corporation.

With respect to an amount deferred that is not reasonably ascertainable, an employer may choose to take an amount into account at any date or dates before the resolution date (but not before the date described in paragraph of this section with respect to the amount deferred). An employer that chooses to take an amount into account at an early inclusion date under this paragraph for an employee under a plan is not required until the resolution date to identify the period to which the amount taken into account relates. However, in no event may any amount deferred under a nonqualified deferred compensation plan be taken into account as wages for FICA tax purposes prior to the establishment of the plan providing for the amount deferred . Therefore, if an amount is deferred pursuant to the terms of a legally binding agreement that is not put in writing until after the amount would otherwise be taken into account under this paragraph , the amount deferred must be taken into account as wages for FICA tax purposes as of the date the material terms of the plan are put in writing. For purposes of this section, if benefits for an employee are provided under a nonqualified deferred compensation plan that is not an account balance plan , the amount deferred for a period equals the present value of the additional future payment or payments to which the employee has obtained a legally binding right (as described in paragraph of this section) under the plan during that period. A plan does not fail to be an account balance plan merely because the plan permits employees to elect to receive their benefits under the plan in a form of benefit other than payment of the account balance, provided the amount of benefit payable in that other form is actuarially equivalent to payment of the account balance using actuarial assumptions that are reasonable.

Definition Of Calendar Year

If an employer determined FICA tax liability with respect to section 3121 in any period ending before January 1, 2000, for which the applicable period of limitations has not expired on January 1, 2000 (pre-effective-date open periods), in a manner that was not in accordance with this section, the employer may adjust its FICA tax determination for that period to conform to this section. Thus, if an amount deferred was taken into account in a pre-effective-date open period when it was not required to be taken into account (e.g., an amount taken into account before it became reasonably ascertainable), the employer may claim a refund or credit for any FICA tax paid on that amount to the extent permitted by sections 6402, 6413, and 6511. A Form 941c, or an equivalent statement, must accompany each claim for refund. In addition, Form W-2 or, if applicable, Form W-2c must also reflect the actual amount deferred that should have been taken into account.

The facts and circumstances indicate that the plan is established in contemplation of the employee’s impending termination of employment. The corporations are members of a “controlled group of corporations”, as defined in section 1563 of the Code, or would be members if section 1563 and did not apply and if the phrase “more than 50 percent” were substituted for the phrase “at least 80 percent” wherever it appears in section 1563.

Foreign Governments And Some International Organizations

For purposes of this paragraph , the normal form of benefit commencing at normal commencement date under the plan is the form, and date of commencement, under which the payments due to the employee under the plan are expressed, prior to adjustments for form or timing of commencement of payments. Employer Y establishes a plan to provide supplemental retirement benefits to a group of management employees who are at various stages of their careers. All employees covered by the plan are subject to the same benefit formula. Employee H is planning to retire within six months of the date on which the plan is established. The facts and circumstances indicate that the plan was not established in contemplation of impending termination.

Assume the same facts as in example 6, except that because of his age D no longer participates in the more rigorous liturgical services of the order and that the amount of time which he spends in all duties which might appropriately be performed by active https://www.bookstime.com/ members of his order is reduced by 75 percent. D is reasonably considered retired in view of the large reduction in his participation in the usual devotional routine of his order. C is a member of a religious order who is subject to a vow of poverty.

The Federal Insurance Contributions Act Fica

If the related corporations maintain a record of the remuneration disbursed to the employee for services performed for each corporation, the remuneration-based allocation rules of paragraph of this section apply. If the related corporations do not maintain this record of remuneration, the group-wide allocation rules of paragraph of this section apply. In all cases, allocations must be made with respect to each payment of wages. The allocation of employment tax liabilities pursuant to this subparagraph also determines which related corporation may be entitled to income tax deductions with respect to the payments of those taxes. Employer O adopts a bonus plan on December 1, 1993, that becomes effective and legally binding on January 1, 1994. Under the plan, which is not set forth in writing, a specified bonus amount is credited to Employee C’s account each December 31.

• Thirty percent or more of one corporation’s employees are concurrently employees of the other corporation.
• Payment by an employer of employee tax under section 3101 or employee contributions under a State law.
• Employees covered under the plan generally may not be treated as qualified participants under the alternative lookback rule for any portion of the calendar year following the year in which such allocation is made.
• For purposes of section 3121 and this section, a member of a religious order means any individual who is subject to a vow of poverty as a member of such order, who performs tasks usually required of an active member of such order, and who is not considered retired because of old age or total disability.
• Increases in an employee’s compensation after the early inclusion date must be disregarded.
• Remuneration paid in any other medium, such as clothing, car tokens, transportation passes or tickets, or other goods or commodities, is disregarded in determining whether the $100 cash-remuneration test is met.
• Section 3121 does not except from employment service performed by a duly ordained, commissioned, or licensed minister of a church which is not in the exercise of his ministry.

Consideration is also given to the amount of time the individual devotes to the performance of services in the exercise of duties required by his religious order. This time includes all the time spent by him in any activity in connection with services that might appropriately be performed in the exercise of duties required of active members by the order. Normally, an individual who, solely by reason of his advanced age, performs services of less than 45 hours per month shall be considered retired. In no event shall an individual who, solely by reason of his advanced age, performs services of less than 15 hours per month not be considered retired. Tips are considered to be received by an employee in the course of his employment for an employer regardless of whether the tips are received by the employee from a person other than his employer or are paid to the employee by the employer.

Federal Insurance Contributions Act Fica

If at the time of such payment the plan is a qualified bond purchase plan described in section 405. If at the time of such payment the annuity plan meets the requirements of section 401, , , and . The R Corporation which is engaged in the operation of a chain of grocery stores transfers one of such stores to the S Company. The S Company is considered to have acquired a separate unit of the trade or business of the R Corporation. The M Corporation which is engaged in the manufacture of automobiles, including the manufacture of automobile engines, discontinues the manufacture of the engines and transfers all the property used in such manufacturing operation to the N Company. The N Company is considered to have acquired a separate unit of the trade or business of the M Corporation, namely, its engine manufacturing unit. The method of acquisition by an employer of the property of another employer is immaterial.

• Because Employee F terminates employment within 12 months of the establishment of the plan and the facts and circumstances set forth above indicate that the plan was established in contemplation of impending termination of employment, the plan is considered to be established in connection with impending termination within the meaning of paragraph of this section.
• A retirement system is not described in this paragraph if there has been a material decrease in the level of retirement benefits under the retirement system pursuant to an amendment adopted subsequent to November 5, 1990.
• Under the plan, an employee’s account is credited with a contribution equal to 10 percent of salary on December 31 of each year.
• Services may be performed on the vessel or aircraft, however, which have no connection with it, as in the case of services performed by an employee while on the vessel or aircraft merely as a passenger in the general sense.
• Whether an employee’s course workload is sufficient in order for the employee’s employment to be incident to and for the purpose of pursuing a course of study depends on the particular facts and circumstances.
• Because amounts under a plan were taken into account (within the meaning of paragraph of this section) as amounts deferred under a nonqualified deferred compensation plan pursuant to a reasonable, good faith interpretation of section 3121, but that plan is not a nonqualified deferred compensation plan within the meaning of paragraph of this section, the transition rules provided in paragraph of this section apply.
• Such a relationship contemplates the performance of services by the employee for the benefit of the employing corporation , in exchange for remuneration which, if deductible for the purposes of Federal income tax, would be deductible by the employing corporation.

Under the alternative method described in paragraph of this section, the amount taken into account on March 15, 2004 , will be treated as FICA wages paid to and received by Employee A on March 15, 2004. The facts are the same as in Example 8, except that the plan provides that Employee C may choose to receive early retirement benefits on an unreduced basis at any time after age 60 if Employee C has completed 15 years of service by that date. The facts are the same as in Example 3, except that the annual rate of increase or decrease is equal to the greater of the rate of total return on a specified aggressive growth mutual fund or the rate of return on a specified income-oriented mutual fund. Pursuant to paragraph of this section, the income credits in excess of the income that would be credited using the AFR are considered additional amounts deferred in the year credited. Normal form of benefit commencing at normal commencement date defined.

Growing A Business

An organization is a school, college, or university within the meaning of section 3121 if its primary function is the presentation of formal instruction, it normally maintains a regular faculty and curriculum, and it normally has a regularly enrolled body of students in attendance at the place where its educational activities are regularly carried on. A community college treats a teacher as a full-time employee if the teacher is assigned to work 15 classroom hours per week. Because the assigned classroom hours of the teacher are at least one-half of the school’s definition of full-time teacher, the teacher is not a part-time employee. Services performed by an individual as an employee serving on a temporary basis in case of fire, storm, snow, earthquake, flood, or other similar emergency. The services are covered by a retirement system established by such instrumentality.

• For example, benefits under a death benefit plan described in section 3121 do not constitute wages for FICA tax purposes.
• These religious groups consider insurance to be a lack of trust in God, and see it as their religious duty to provide for members who are sick, disabled, or elderly.
• Assume the same facts as in example 6, except that because of his age D no longer participates in the more rigorous liturgical services of the order and that the amount of time which he spends in all duties which might appropriately be performed by active members of his order is reduced by 75 percent.
• The employee tax is computed by applying to the wages received by the employee the rates in effect at the time such wages are received.
• Employee D is employed in the accounting department of University U, and is enrolled and regularly attending classes at U in pursuit of an M.B.A. degree.

The $140 payment to A made in November is not wages for calendar year 2003 because the $150-cash-remuneration test is not met and X’s total expenditures for agricultural labor for such year are not equal to or in excess of $2,500. The $140 payment to A made in January is not wages for 2004 because the $150 cash-remuneration test is not met. However, if X pays additional remuneration to employees for agricultural labor in 2004 that equals or exceeds $2,360, the employer’s-expenditures-for-agricultural-labor test will be met and the $140 paid by X to A in 2004 will be considered wages. As employers, state agencies and institutions of higher education are required by the Federal Insurance Contributions Act to deduct employment taxes from the wages of a state officer or employee. Employers must withhold a set percentage of an employee’s salary each pay period. FICA requires that the employer match the employee’s amount and contribute the money to a government account known as the Social Security Trust Fund.

Federal Insurance Contributions Act Fica Deduction Calculator_form

For example, in the case of an amount deferred before 1994 that was not reasonably ascertainable , the employer is treated as if it had anticipated the actual amount, form, and commencement date for the benefit payments attributable to the amount deferred and had taken the amount deferred into account at an early inclusion date before 1994 using a method permitted under this section. Thus, with respect to such an amount deferred, the employer is not required to take any additional amount into account when the amount deferred becomes reasonably ascertainable, and no additional FICA tax will be due when the benefit payments attributable to the amount deferred are actually or constructively paid. Employee E obtains a fully vested, legally binding right during 2002, 2003, and 2004 to payments from a nonqualified deferred compensation plan of Employer Q under Federal Insurance Contributions Act which the benefits are based on a formula that includes an actuarial offset by the account balance under a qualified defined contribution plan of Employer Q as of December 31, 2004. The payments from the nonqualified deferred compensation plan are to commence on December 31, 2005. At the resolution date for the amounts earned during 2002, 2003, and 2004, which is December 31, 2004, Employee E has a legally binding right to a net annual benefit of $100,000 payable for life to commence on December 31, 2005. On the resolution date, Employer Q determines that on December 31, 2002, Employee E had a legally binding right to receive $100,000 annually for life beginning on December 31, 2005 (as a result of the gross benefit under the nonqualified plan being $120,000 annually for life, and the offset being $20,000 annually for life, as of December 31, 2002).

The annual wage limitation applies only if the remuneration received during any 1 calendar year by an employee from the same employer for employment performed after 1936 exceeds the amount of such limitation. The limitation in such case relates to the amount of remuneration received during any 1 calendar year for employment after 1936 and not to the amount of remuneration for employment performed in any 1 calendar year. Determine the amount which must be deducted upon each payment of wages which are under the control of the employer to be made during the quarter by the employer to the employee in order to collect from the employee during the quarter an amount equal to the amount obtained by multiplying the estimated quarterly tips by the sum of the rates of tax under subsections and of section 3101. The employee tax is computed by applying to the wages received by the employee the rates in effect at the time such wages are received. Federal Insurance Contributions Act taxes are paid by both employees and their employers.

A group of related corporations may have more than one common paymaster. Some of the related corporations may use one common paymaster and others of the related corporations use another common paymaster with respect to a certain class of employees. A corporation that uses a common paymaster to disburse remuneration to certain of its employees may use a different common paymaster to disburse remuneration to other employees. A religious order or an autonomous subdivision of such an order desiring to make an election of coverage pursuant to section 3121 and this section shall file a certificate of election on Form SS-16 in accordance with the instructions thereto. However, in the case of an election made before August 9, 1973, a document other than Form SS-16 shall constitute a certificate of election if it purports to be a binding election of coverage and if it is filed with an appropriate official of the Internal Revenue Service. Such a document shall be given the effect it would have if it were a certificate of election containing the provisions required by paragraph of this section.

Thus, if the periods for which payments of remuneration are made to the employee by the employer are of uniform duration, each such period constitutes a “pay period”. If, however, the periods occasionally vary in duration, the “pay period” is the period for which a payment of remuneration is ordinarily made to the employee by the employer, even though that period does not coincide with the actual period for which a particular payment of remuneration is made. The services of a full-time employee are not incident to and for the purpose of pursuing a course of study.

Social Security & Medicare

Government, or by certain other student employees described in section 5351 of title 5, United States Code. By a citizen of the United States as an employee for a foreign subsidiary corporation. For provisions relating to the extension of the Federal old-age, survivors, and disability insurance system established by title II of the Social Security Act to certain services not constituting employment which are performed outside the United States by citizens of the United States in the employ of a foreign subsidiary of a domestic corporation, see section 3121 and Part 36 of this chapter .

Employer P establishes a nonqualified deferred compensation plan for a group of employees. Under the plan, each participating employee has a fully vested right to receive a life annuity, payable monthly beginning at age 65, equal to the product of 2 percent for each year of service and the employee’s highest average annual compensation for any 3-year period. The plan also provides that, if an employee dies before age 65, the present value of the future payments will be paid to his or her beneficiary. As permitted under paragraph of this section, any amount deferred under the plan for a calendar year is taken into account as FICA wages as of the last day of the year. As of December 31, 2002, Employee C is age 60, has 25 years of service, and high 3-year average compensation of $100,000 . As of December 31, 2003, Employee C is age 61, has 26 years of service, and has high 3-year average compensation of $104,000. As of December 31, 2004, Employee C is age 62, has 27 years of service, and has high 3-year average compensation of $105,000.