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Ken is a self - employed architect in a small firm with four employees: himself, his office assistant, and two drafters, all of whom have
Ken is a selfemployed architect in a small firm with four employees: himself, his office assistant, and two drafters, all of whom have worked for Ken fulltime for the last four years. The office assistant earns $ per year, and each drafter earns $ Kens net earnings from selfemployment after deducting all expenses and onehalf of selfemployment taxes are $ Ken is considering whether to establish a SIMPLE plan and has a few questions. Required: Is he eligible to establish a SIMPLE plan? Is he required to cover his employees under the plan? If his employees must be covered, what is the maximum amount that can be contributed on their behalf? D If the employees are not covered, what is the maximum amount Ken can contribute for himself? E If Ken is required to contribute for his employees and chooses to contribute the maximum amount, what is the maximum amount Ken can contribute for himself? Hint: Calculate the employee amounts first. Ignore any changes in Kens selfemployment tax. NEED HELP WITH D & E PLEASE
Ken is a selfemployed architect in a small firm with four employees: himself, his office assistant, and two drafters, all of whom have worked for Ken fulltime for the last four years. The office assistant earns $ per year, and each drafter earns $ Kens net earnings from selfemployment after deducting all expenses and onehalf of selfemployment taxes are $ Ken is considering whether to establish a SIMPLE plan and has a few questions.
Required:
Is he eligible to establish a SIMPLE plan?
Is he required to cover his employees under the plan?
If his employees must be covered, what is the maximum amount that can be contributed on their behalf?
D If the employees are not covered, what is the maximum amount Ken can contribute for himself?
E If Ken is required to contribute for his employees and chooses to contribute the maximum amount, what is the maximum amount Ken can contribute for himself? Hint: Calculate the employee amounts first. Ignore any changes in Kens selfemployment tax.
NEED HELP WITH D & E PLEASE
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