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9.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
9.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 I (i.e. employees still owe FlCA taxes on the portion of their payroll deductions related to 4010:) contributions). ln contrast, payroll deductions related to exible 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 ZEROdecimaI places
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