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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.

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