Discuss employee after-tax savings

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Paris participates in her employer's nonqualified deferred compensation plan. For 2016, she is deferring 10 percent of her $320,000 annual salary. Assuming this is her only source of income and her marginal income tax rate is 30 percent, how much does deferring Paris's income save her employer (after taxes) in 2016? Paris's employer's marginal tax rate is 35 percent (ignore payroll taxes). Employee after-tax savings?

Reference no: EM131751586

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