Please address the following:Eric, your friend, received his Form W-2 from his employer (below) and has asked for your help. Eric’s 2020 salary was $145,000 and he does not understand why the amounts in Boxes 1, 3 and 5 are not $145,000? His final paycheck for the year included the following information:Eric contributed 5 percent of his salary to the company 401(k) plan on a pre-tax basis.Eric is married with two children. He had $5,000 deducted from his wages for a Dependent Care Flexible Spending Account.Eric is enrolled in the company-sponsored life insurance program. He has a policy that provides a benefit of $145,000.Eric contributed $2,500 to the Health Care Flexible Spending Account (he keeps forgetting that the maximum deferral has increased over the years).Using the information and Eric’s Form W-2, explain to Eric the reconciling of his salary of $145,000 to the amounts in Boxes 1, 3, and 5. a Employee's socalscully umber791-51-4335Sate, accurate,OMB No. 1545-0008 FASTI UseVst the IRS wabelta atefilewww.s.gowerteb Employor Identification number EN12-34567891 Wages, ips, cner oomperealon130,377.002 Foderal ncome tax wihelG15, 184.00a Employer's nama, addross, and ZIP code* Sucaluny wagur128,400.00Ivy Technologies Inc.436 E. 35 Ave.7,960.806 Modicare tax withheld1,995.596 Medcare wages and tipsGary, IN 46409137,627.007 Socal necurtty tips8 Allocated tipsd Control rumber9 Vorication code10 Depanderk cara bonefts5,000.00• Employae's firstname and IntialSur. 11 Nonqualned plansLast name12a Soo nstructions for box 12Eric Hayes127.0012bplansick p555 E. 81st Street7,250.00Merrillville, IN 4641014 Cther120| DD| 12,345.0012df Employoe's addross and DP code15 State Employer's state ID numberIN | 0012223100116 Stata wagas, tips, ata.17 State Income tax18 Local wagus, 1ps, atc.19 Local Income tax20 Localtty name130,377.004,956.00130,377.00987.00LAKEForm W-2 Wage and TaxStatementDepartment of the Treaury-Internal Roverue Service2018Copy B-To Be FIlled With Employee's FEDERAL Tax Return.This Information Is belng fumished to the Intemal Revenue Service.

The W-2 form is the authority Wage and Tax Statement that reports a worker's yearly wages and the…

Answered: ric, your friend, received his Form W-2…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Please address the following:

Eric, your friend, received his Form W-2 from his employer (below) and has asked for your help. Eric’s 2020 salary was $145,000 and he does not understand why the amounts in Boxes 1, 3 and 5 are not $145,000? His final paycheck for the year included the following information:

Eric contributed 5 percent of his salary to the company 401(k) plan on a pre-tax basis.
Eric is married with two children. He had $5,000 deducted from his wages for a Dependent Care Flexible Spending Account.
Eric is enrolled in the company-sponsored life insurance program. He has a policy that provides a benefit of $145,000.
Eric contributed $2,500 to the Health Care Flexible Spending Account (he keeps forgetting that the maximum deferral has increased over the years).

Using the information and Eric’s Form W-2, explain to Eric the reconciling of his salary of $145,000 to the amounts in Boxes 1, 3, and 5.