Effective after-tax cost of 401(k) contributionJared Nguyen is an operations manager for a large manufacturer. He earned $71,000 in 2019 and plans to contribute the maximum allowed to the firm's401(k) plan. Assuming that Jared is in the 32 percent tax bracket, calculate his taxable income and the amount of his tax savings from contributing to thefirm's 401(k) plan. Assume an individual employee can put as much as $19,000 into a tax-deferred 401(k) plan. Assume a standard deduction of $12,200and no personal exemption. If necessary, round the answers to the nearest dollar.Taxable incomeAmount of his tax savings from contributing to the firm's 401(k) planHow much did it actually cost Jared on an after-tax basis to make this retirement plan contribution? If necessary, round the answer to the nearest dollar.$$

401 (k) contribution plan :— It is retirement saving plan for the employers of USA. Under this plan,…

Answered: Effective after-tax cost of 401(k)…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Suppose two workers earn labor incomes of $20,000 per year in each of two tax accounting periods. One worker saves 20% of her labor earnings in the first period and spends all of her savings and accumulated interest in the final period. The other worker never saves any of her labor earnings. The market rate of interest is 10%.' a. Calculate the discounted present value of taxes paid over the two periods for each of the workers under a 15% comprehensive income tax. b. Calculate the discounted present value of taxes paid over the two periods under a comprehensive consumption tax. c. Comment on the equity and efficiency aspects of each of the two taxes.
A firm pays $22,000,000 in compensation to its 401K participants in 2021. What is the maximum tax-deferred contribution the firm can make in 2021? (Round to the nearest whole dollar)
please explain in step to step on how to get this answer. answer is 95,259.00 Jason graduated in 2017 and landed a job after graduation in Orlando for Finance. If his taxable income for 2019 is $68000, how much federal income tax will he owe given the 2019 federal income tax brackets below? 15% on the first $47,630 of taxable income, plus 20.5% on the next $47,629 of taxable income (on the portion of taxable income over 47,630 up to $95,259), plus 26% on the next $52,408 of taxable income (on the portion of taxable income over $95,259 up to $147,667), plus 29% on the next $62,704 of taxable income (on the portion of taxable income over 147,667 up to $210,371), plus 33% of taxable income over $210,371
Determine the maximum contribution that can be made to a Keogh plan in each of the following cases. In all instances, the individual is self-employed, and the self-employment tax reduction has already been taken. Required: a. Self-employment income of $61,800. b. Self-employment income of $61,800 and wage income of $32,000. c. Self-employment income of $125,000. d. Self-employment income of $319,000. Mc Graw Hill 22 é a. Maximum Keogh plan contribution b. Maximum Keogh plan contribution c. Maximum Keogh plan contribution d. Maximum Keogh plan contribution F2 Answer is complete but not entirely correct. Z 3 80 F3 E 4 F6 7 ወ F7 .— 8 Y U DII F8 9 F9
Required: Calculate the total Social Security and Medicare tax burden on a sole proprietorship earning 2020 profit of $300,000, assuming a single sole proprietor with no other earned income. (Round your intermediate calculations to the nearest whole dollar amount.) Total tax
Determine the maximum contribution that can be made to a Keogh plan in each of the following cases. In all instances, the individual is self-employed, and the self-employment tax reduction has already been taken. Required: a. Self-employment income of $71,000. b. Self-employment income of $71,000 and wage income of $38,500. c. Self-employment income of $190,000. d. Self-employment income of $307,000. a. Maximum Keogh plan contribution b. Maximum Keogh plan contribution c. Maximum Keogh plan contribution d. Maximum Keogh plan contribution $ $ Amount $ 614 142 142 380
Use (a) the percentage method and (b) the wage-bracket method to compute the federal income taxes to withhold from the wages or salaries of each employee. Enter all amounts as positive numbers. Round your calculations and final answers to the nearest cent. Use the 2020 Federal income taxes tables for the percentage method table and the wage bracket method table
John Jenkins earns $1,290 per week. The deductions from his pay were: FIT $111.00 FICA-OASDI 79.98 FICA-HI 18.71 State income tax 31.00 State disability insurance 9.03 Credit union deduction 40.00 Health insurance premium 47.50 Charitable contribution 5.00 John's disposable earnings would be: $1,290.00 - $111.00 (FIT) - $79.98 - $18.71 (FICA deductions) - $31.00 (SIT) - $9.03 (disability insurance) = $1,040.28 Example 6-3 Huffman Company has a child support order outstanding on one of its employees (Charles Suffert-$170 per week). Charles Suffert's disposable income is $950 per week. A new garnishment is received for a $5,000 debt to a credit card company. The company would take an additional $237.50 out of Suffert's pay. Lesser of: 25% x $950 $237.50 or $950 - (30 x $7.25) = $732.50 Kalen O'Brien earned $730 this week. The deductions from her pay were as follows: FIT $66.00 FICA-OASDI 45.26 FICA-HI 10.59 State income tax 36.50 State disability insurance 8.61 Health insurance premium…
d. If the employees are not covered, what is the maximum amount Ken can contribute for himself? Only 25% of employee earnings Lesser of $61,000 or 25% of employee earnings Greater of $61,000 or 25% of employee earnings Only 25% of employee earnings Only $61,000 e. If Ken is required to contribute for his employees and chooses to contribute the maximum amount, what is the maximum amount Ken can contribute for himself? (Hint: Calculate the employee amounts first.) Ignore any changes in Ken's self-employment tax. Maximum contribution $ 0
1. Anderson Brown worked 39 hours during the first week of the calendar year and earns regular wages of $15/hour. She contributes 4% of gross pay to a 401(k) plan and $25/week to a dependent-care flexible spending account. Her Social Security tax for the week is $_____ . 2. Which statement about calculating taxable earnings for Social Security tax is accurate? Answer: A. 401(k) contributions are taxable for Social Security tax and are subtracted from gross pay when calculating taxable earnings for that tax. B. 401(k) contributions are taxable for Social Security tax and are not subtracted from gross pay when calculating taxable earnings for that tax. C. 401(k) contributions are not taxable for Social Security tax and are subtracted from gross pay when calculating taxable earnings for that tax. D. 401(k) contributions are not taxable for Social Security tax and are not subtracted from gross pay when…
Calculate the employer's total FUTA and SUTA taxes. As TCLH Industries operates in North Carolina, assume a SUTA tax rate of 1.2% and a taxable earnings threshold of $29,600. Current period taxable earnings for FUTA and SUTA taxes are the same as those for FICA taxes. Year-to-date taxable earnings for FUTA and SUTA taxes, prior to the current pay period, are as follows: Zachary Fox: $0 Calvin Bell: $20,478.57 David Alexander: $198,450 Michael Sierra: $117,600
For each employee listed, use both the wage-bracket method and the percentage method to calculate federal income tax withholding for an employee who has submitted a pre-2020 Form W-4. Refer to Publication 15-T (2020). Carol Harrison (single; 0 federal withholding allowance) earned daily gross pay of $210. For each period, she makes a 401(k) contribution of 13% of gross pay.Using wage-bracket method: Federal income tax withholding = $ Using percentage method: Federal income tax withholding = $

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