Vision Payroll

The IRS recently released Notice 2008-62 which states that teachers who receive pay over a 12-month period will generally not be subject to §409A. Technically, teachers who only work for 9 or 10 months but are paid over a 12-month schedule have deferred compensation under §409A since some pay is deferred from one calendar year to the next. Under proposed regulations to be issued under §457(f), teachers paid under such plans will be exempt from the §409A rules.