Which of the following is the correct term for an arrangement in which an employee is paid a portion of their income at a later stage in life?
A. Late pay
B. Deferred pay
C. Incentives
D. Stock options
A. Late pay
B. Deferred pay
C. Incentives
D. Stock options
Answer: B – Deferred pay is the correct term for an arrangement in which an employee is paid a portion of their income at a later stage in life.
Explanation: Deferred compensation is an arrangement for a portion of an employee`s income to be paid out at a future date to compensate the actual income. Good examples of deferred compensation are retirement plans, pensions, life insurance plans, and stock options.
