2.cengagenow.com eBook Calculator Tax Drill -Executive Compensation The milliona

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2.cengagenow.com eBook Calculator Tax Drill -Executive Compensation The millionaires' provision does not limit the amount of compensation that can be paid to an emp the amount the employer can deduct for the compensation of a covered executive to loyee. Instead it doeslimit o X annually. Feedback Check My Work The tax law provides for the disallowance of certain types of expenses. Without specific restrictions in the tax law, taxpayers might attempt to deduct items that, in reality, are personal expenditures. Previous Next Check My Work

Explanation / Answer

$1 million

The millionaires' provision does not limit the amount of compensation that can be paid to an employee. Instead, it limits the amount the employer can deduct for the compensation of a covered executive to $1 million annually.

Covered employees include the chief executive officer and the four other most highly compensated officers

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