Clayton participates in his employer's nonqualified deferred compensation plan. For 2022, he is deferring 10 percent of his $392,000 annual salary. Assuming this is his only source of income and his marginal income tax rate is 32 percent, how much does deferring Clayton's income save his employer (after taxes) in 2022? The employer's marginal tax rate is 21 percent (ignore payroll taxes).
Clayton participates in his employer's nonqualified deferred compensation plan. For 2022, he is deferring 10 percent of his $392,000 annual salary. Assuming this is his only source of income and his marginal income tax rate is 32 percent, how much does deferring Clayton's income save his employer (after taxes) in 2022? The employer's marginal tax rate is 21 percent (ignore payroll taxes).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Clayton participates in his employer's nonqualified deferred compensation plan. For 2022, he is deferring 10 percent of his $392,000 annual salary. Assuming this is his only source of income and his marginal income tax rate is 32 percent, how much does deferring Clayton's income save his employer (after taxes) in 2022? The employer's marginal tax rate is 21 percent (ignore payroll taxes).
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