Hello. I had a question about whether local taxes are to be paid on contributions to a non qualified deferred compensation plan in the year that the contributions are made. I am in Ohio. The W2 does show include the total wages before contributions were made in box 5 (medicare) and local wages (box 18).
(1) Is paying local tax on the total wages (which includes the wages that were deferred) apropriate?
(2) When the payments/distributions are eventually made to me in the future from the plan, then the payment/distribution amount (which may include gains or losses) from the plan would only be taxed on a Federal and State level?
