Insurance Terms

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K
Key Employee
Key Person Insurance
Kiddie Tax
Key Employee
A key employee is an individual who may have special skills and makes a significant contribution to the business. Executives and managers may be considered key employees, in addition to certain shareholders who actively participate in the ongoing success of the business.
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Key Person Insurance
Insurance designed to pay benefits to a business that loses the essential services of a key employee due to disability or death, and the business suffers a financial loss as a result.
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Kiddie Tax
Tax, at the parents' top tax rate, filed on Form 8615 for investment income of children under age 14 exceeding $1,400 in 1999 (indexed annually).
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