Ginny is a sole proprietor. She wants to provide 60% of salary disability coverage to Joanna, her employee who is in the 35% combined tax bracket. Joanna's W2 wages are $40,000 and Ginny's annual contribution to her qualified profit-sharing account on Joanna's behalf is $4,000. Ignoring cost-of-living adjustments or any possible Social Security benefits, calculate Joanna's

Ginny is a sole proprietor. She wants to provide 60% of salary disability coverage to Joanna, her employee who is in the 35% combined tax bracket. Joanna's W2 wages are $40,000 and Ginny's annual contribution to her qualified profit-sharing account on Joanna's behalf is $4,000. Ignoring cost-of-living adjustments or any possible Social Security benefits, calculate Joanna's

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter8: Taxation Of Individuals

Section: Chapter Questions

Problem 70TA

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Rachel receives employer provided health insurance. The employer's cost of the health insurance is $6,200 annually. What is her employee's after-tax cost of providing the health insurance, assuming that the employer's marginal tax rate is 21 percent and is profitable?