1/1/2017 $11.30 1/1/2018 $11.75 1/1/2018 $11.75 1,400 5/1/2018 $17.50 Nonqualified Stock Options Incentive Stock Options Incentive Stock Options 200 options - 7 shares per option 100 options - 7 shares per option 200 options - 7 shares per option 1/1/2016 $9.50 1/1/2017 $11.30 1/1/2017 $11.30 700 5/1/2018 $17.50 1/1/2017 $11.30 1/1/2018 $11.75 1/1/2018 $11.75 In addition to his base salary, incentive award and equity-based compensation, Hunter also received the following taxable AND non-taxable fringe benefits from his employer during 2018: Company's Hunter's Annual Annual Cost Cost $2,160/year $1,440/year $180/year $0 $816/year $0 Fringe Benefit Description The company offers health insurance to all employees. The monthly premium for Health each employee is $300, of which the company pays 60% and the employee pays insurance 40% via a pre-tax payroll deduction. *Hunter elected to receive health insurance coverage for 2018. Accidental death and dismemberment The company provides AD&D insurance to all employees, free-of-charge. ("AD&D") insurance The company offers a fitness facility membership to all employees, free of charge. Fitness facility The fitness facility is not located on the company's business premises and is open to membership the general public. *Hunter elected to receive a membership in the fitness facility for 2018. Employer- The company provides all engineers with a company phone, due to frequent after- provided cell hours client calls as well as the significant number of clients residing outside of the phone United States. Employees are not allowed to use their company phone to make personal calls. Basic group- The company provides group-term life insurance ($50,000 policy) to all employees, term life insurance policy free-of-charge. The company offers supplemental group-term life insurance to all employees. The Supplemental supplemental life insurance coverage employees can elect is capped at 8 times their group-term life base salary or $500,000, whichever is lower. insurance policy Hunter elected to receive the maximum allowable $500,000 in supplemental life insurance for 2018. Employer- The company provides catered lunches to all employees on Mondays and Wednesdays, free-of-charge. The meals are furnished for the convenience of the provided meals company and are provided on the company's business premises. Qualified The company provides qualified parking access at a parking garage located on the parking company's business premises to all employees, free of charge. $444/year $0 $90/year $0 $900/year $240/year $1,352/year $0 $3,900/year ($325/month) $0 Compute the amount of cash that Hunter saved in 2018 because he chose to take advantage of payroll deductions made available to him by his employer. Hint: Payroll deductions related to 401(k) contributions only reduce the amount of an employee's taxable wages reported on Form W-2, Box 1 (i.e. employees still owe FICA taxes on the portion of their payroll deductions related to 401(k) contributions). In contrast, payroll deductions related to flexible spending accounts and health insurance premiums reduce the amount of an employee's taxable wages reported on Form W-2, Boxes 1, 3 and 5. Hunter's marginal tax rate of 24% (income tax rate only) and 31.65% (income tax rate + Social Security tax rate + Medicare tax rate) should be used as applicable for this analysis and your answer should be shown as a positive amount and rounded to ZERO decimal places. Numeric Response What amount (if any) will Hunter's employer report as taxable wages on his 2018 Form W-2 with respect to his restricted stock equity awards? If Hunter does not have any 2018 taxable wages related to his restricted stock equity awards, please Input O for your response (1.e. do not leave the answer blank). Please round your answer to ZERO decimal places Numeric Response 1/1/2017 $11.30 1/1/2018 $11.75 1/1/2018 $11.75 1,400 5/1/2018 $17.50 Nonqualified Stock Options Incentive Stock Options Incentive Stock Options 200 options - 7 shares per option 100 options - 7 shares per option 200 options - 7 shares per option 1/1/2016 $9.50 1/1/2017 $11.30 1/1/2017 $11.30 700 5/1/2018 $17.50 1/1/2017 $11.30 1/1/2018 $11.75 1/1/2018 $11.75 In addition to his base salary, incentive award and equity-based compensation, Hunter also received the following taxable AND non-taxable fringe benefits from his employer during 2018: Company's Hunter's Annual Annual Cost Cost $2,160/year $1,440/year $180/year $0 $816/year $0 Fringe Benefit Description The company offers health insurance to all employees. The monthly premium for Health each employee is $300, of which the company pays 60% and the employee pays insurance 40% via a pre-tax payroll deduction. *Hunter elected to receive health insurance coverage for 2018. Accidental death and dismemberment The company provides AD&D insurance to all employees, free-of-charge. ("AD&D") insurance The company offers a fitness facility membership to all employees, free of charge. Fitness facility The fitness facility is not located on the company's business premises and is open to membership the general public. *Hunter elected to receive a membership in the fitness facility for 2018. Employer- The company provides all engineers with a company phone, due to frequent after- provided cell hours client calls as well as the significant number of clients residing outside of the phone United States. Employees are not allowed to use their company phone to make personal calls. Basic group- The company provides group-term life insurance ($50,000 policy) to all employees, term life insurance policy free-of-charge. The company offers supplemental group-term life insurance to all employees. The Supplemental supplemental life insurance coverage employees can elect is capped at 8 times their group-term life base salary or $500,000, whichever is lower. insurance policy Hunter elected to receive the maximum allowable $500,000 in supplemental life insurance for 2018. Employer- The company provides catered lunches to all employees on Mondays and Wednesdays, free-of-charge. The meals are furnished for the convenience of the provided meals company and are provided on the company's business premises. Qualified The company provides qualified parking access at a parking garage located on the parking company's business premises to all employees, free of charge. $444/year $0 $90/year $0 $900/year $240/year $1,352/year $0 $3,900/year ($325/month) $0 Compute the amount of cash that Hunter saved in 2018 because he chose to take advantage of payroll deductions made available to him by his employer. Hint: Payroll deductions related to 401(k) contributions only reduce the amount of an employee's taxable wages reported on Form W-2, Box 1 (i.e. employees still owe FICA taxes on the portion of their payroll deductions related to 401(k) contributions). In contrast, payroll deductions related to flexible spending accounts and health insurance premiums reduce the amount of an employee's taxable wages reported on Form W-2, Boxes 1, 3 and 5. Hunter's marginal tax rate of 24% (income tax rate only) and 31.65% (income tax rate + Social Security tax rate + Medicare tax rate) should be used as applicable for this analysis and your answer should be shown as a positive amount and rounded to ZERO decimal places. Numeric Response What amount (if any) will Hunter's employer report as taxable wages on his 2018 Form W-2 with respect to his restricted stock equity awards? If Hunter does not have any 2018 taxable wages related to his restricted stock equity awards, please Input O for your response (1.e. do not leave the answer blank). Please round your answer to ZERO decimal places Numeric Response