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This document is a Salary Reduction Agreement for the 403(b) Tax-Sheltered Annuity (TSA) Program, allowing University of Wisconsin employees to authorize salary reductions for retirement contributions.

How to fill out salary reduction agreement

How to fill out Salary Reduction Agreement

1. Review the company’s Salary Reduction Agreement form.
2. Fill out your personal information, including your name, position, and employee ID.
3. Specify the percentage or amount of your salary you wish to reduce.
4. Indicate the duration of the salary reduction, including start and end dates.
5. Provide a reason for the salary reduction if required by your company policy.
6. Sign and date the agreement to confirm your understanding and agreement to the terms.
7. Submit the completed form to the appropriate HR or payroll department.

Who needs Salary Reduction Agreement?

1. Employees looking to reduce their salary for personal reasons or financial planning.
2. Employers implementing salary reductions as part of cost-saving measures.
3. Participants in specific benefit plans requiring salary reduction for contributions (e.g., retirement plans).

People Also Ask about

What is a 403 B salary reduction agreement?

A 403(b) plan may allow: Elective deferrals - employee contributions made under a salary reduction agreement. The agreement allows an employer to withhold money from an employee's salary and deposit it into a 403(b) account.

How to fill out salary reduction agreement form?

Generally speaking, it should be in writing and signed by both parties; it should include details about the amount of the reduction, duration of the reduction, any additional benefits that are provided to make up for the reduced pay; and it should also include any applicable tax or social security implications for both

What is the purpose of a Section 125 plan?

The Salary Reduction Agreement (SRA) is to be used to establish, change, or cancel salary reductions withheld from your paycheck and contributed to the 403(b) and/or 457(b) Plan on your behalf. The SRA is also used to change the investment providers that receive your contributions.

What is a Section 125 salary reduction?

A Section 125 plan is part of the IRS code that enables and allows employees to take taxable benefits, such as a cash salary, and convert them into nontaxable benefits. These benefits can be deducted from an employee's paycheck before taxes are paid.

What is a Section 125 salary reduction agreement?

A salary-reduction agreement is a document in which the employee agrees to accept a lower salary in exchange for contributing pre-tax money — also called “salary reduction contributions” or “elections” toward their Section 125 plan.

What are the disadvantages of a Section 125 plan?

A section 125 plan allows employers to offer employees, their spouses and dependents certain benefits on a pretax basis, thereby lowering the employee's taxable income. It essentially puts more money back in the employee's pocket, which can help businesses attract and retain talent.

How do I write a letter to reduce my salary?

Here are the five key components you should include in your salary reduction letter: Salary reduction reasoning: Salary reduction details: Salary reduction timing: Contact information: Positive acknowledgement:

For pdfFiller’s FAQs

What is Salary Reduction Agreement?

A Salary Reduction Agreement is a legal document between an employee and employer that allows an employee to reduce their salary in exchange for benefits, such as contributions to a retirement plan or other pre-tax benefits.

Who is required to file Salary Reduction Agreement?

Employees who wish to participate in certain pre-tax benefit plans, such as retirement savings plans or health savings accounts, typically need to file a Salary Reduction Agreement with their employer.

How to fill out Salary Reduction Agreement?

To fill out a Salary Reduction Agreement, an employee must complete the required forms provided by their employer, specifying the amount of salary to be reduced and the benefits received in exchange for that reduction.

What is the purpose of Salary Reduction Agreement?

The purpose of a Salary Reduction Agreement is to allow employees to allocate a portion of their pre-tax salary towards benefits like retirement accounts, which can lower their taxable income and provide financial savings.

What information must be reported on Salary Reduction Agreement?

The Salary Reduction Agreement should report the employee's name, the amount of salary being reduced, the purpose of the reduction (such as specific benefit plans), and any relevant dates associated with the agreement.