Hua is an employee at Microsoft and has enrolled in the company's Defined Contribution Pension Plan (DCPP) as of January 1, 2022. In 2022, she and her employer each deposited $8,000 in her DCPP. Hua's 2022 gross annual salary was $120,000 while her gross annual salary for 2023 is $130,000. What is Hua's 2023 Contribution Limit? (ignore carry forward amounts) Hua knows that the formula is: The lower of: 18% x the previous year's earned income or $30,780 (Money Purchase Limit) Less: Previous year's Pension Adjustment Equals: Contribution Limit for 2023 Select one: a. $15,400 O b. $23,400 O c. $13,600 O d. $18,000 $5,600

Hua is an employee at Microsoft and has enrolled in the company's Defined Contribution Pension Plan (DCPP) as of January 1, 2022. In 2022, she and her employer each deposited $8,000 in her DCPP. Hua's 2022 gross annual salary was $120,000 while her gross annual salary for 2023 is $130,000. What is Hua's 2023 Contribution Limit? (ignore carry forward amounts) Hua knows that the formula is: The lower of: 18% x the previous year's earned income or $30,780 (Money Purchase Limit) Less: Previous year's Pension Adjustment Equals: Contribution Limit for 2023 Select one: a. $15,400 O b. $23,400 O c. $13,600 O d. $18,000 $5,600

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 39P

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Ms. Berry is employed as an Accounts Manager in the Jamaican company ADM Limited. In 2022, she earned a monthly salary of $820,000.00. She also sits on the board of directors of FHC Company Limited where she receives director's fees of $7,500.00 per month. She contributes 10% of her gross emoluments to the Superannuation Pension Plan. Under the Jamaican Labour Laws, every employee is expected to contribute 3% of their gross emoluments/ salaries up to a maximum of $3,000,000.00 p.a. Calculate Ms. Berry's MONTHLY tax deduction under the PAYE system if the annual income tax threshold $1,500,096 p.a Persons with monthly income below$500,000 pay tax at 25% and those above pays tax at 30%. The monthly PAYE is: a.$162,748 b. $153,061 c.$164,923 d.$189,748
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