2. Holding all else equal, does an employer with a higher marginal tax rate or lower marginal tax rate have a lower after-tax cost of paying a particular employee's salary? Explain. 9. Compare and contrast how employers record book expense and tax expense for stock options. 18. Explain why an employee might accept a lower salary to receive a nontaxable fringe benefit. Why might an employee NOT accept a lower salary to receive a nontaxable fringe benefit. 19. Describe a cafeteria plan and discuss why an employer would provide a cafeteria plan for it's employees