Question
Jan (single, age 53) is an employee of Lafayette, Inc. In the current year, Jan earns a salary of $74,500 and receives the following fringe
Jan (single, age 53) is an employee of Lafayette, Inc. In the current year, Jan earns a salary of $74,500 and receives the following fringe benefits:
- Health insurance total annual premium = $5,200: Jan pays $500 through withholding; Lafayette, Inc. pays $4,700
- Group term life insurance: coverage = $75,000 (all premiums paid by Lafayette, Inc.)
- Annual membership dues to a country club = $4,800 (dues paid by Lafayette, Inc.)
- (Traditional) 401(k) plan: Jan contributes 10% of her annual salary; Lafayette, Inc. matches employee contributions dollar-for-dollar up to 5% of annual salary
Calculate Jan's taxable compensation (Box 1 of Form W-2) for the tax year. Enter your answer using the following format: $XX,XXX (i.e., $13,552).
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