Paris participates in her employer's nonqualified deferred compensation plan. For 2016, she is deferring 10 percent of

Question:

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' income save her employer (after-taxes) in 2016? Paris's employer's marginal tax rate is 35 percent (ignore payroll taxes).