Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
The company will pay payroll taxes, and you'll pay income taxes, on just the cash amounts that are actually paid. The company can only deduct the amounts that are paid from its income - they can't deduct the deferred amounts. I'm assuming that you're talking about a non-qualified deferral plan. The rules are quite different if you're talking about a qualified plan (most likely a 401k). Publication 15 may have some additional information.

--Peter
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.