If the business is unincorporated, a salary deferral election specifying the amount deferred must be completed by December 31st. If the business is incorporated, a salary deferral election specifying the amount intended to be deferred must be completed before the compensation is paid. This means the business owner must have some form of compensation such as regular salary, bonuses or commissions that they have not received prior to signing the salary deferral election form but would be received by the last day of their fiscal year.