Correct. However, your work contributions have already been subtracted from your box 1 taxable wages, so you aren’t paying tax on them. In fact, your work contributions have also been subtracted from your box 3, and box 5 wages, so you don’t pay Social Security or Medicare tax on that amount either. If you made separate contributions, you would get the income tax deduction but you would still be paying Social Security and Medicare tax. You save more tax by making payroll contributions than out of pocket contributions.
