Question
Part 1. Holly is an employee of Kazee, Inc. Her salary is $200,000 for 2014. The employer pays one-half of her Medicare plus unemployement ($4,200)
Part 1. Holly is an employee of Kazee, Inc. Her salary is $200,000 for 2014. The employer pays one-half of her Medicare plus unemployement ($4,200) and worker's compensation (4% of compensation). Holly and Kazee Inc. each pay $5,000 in retirment. How much is Holly's after tax cash flow if she has a flat income tax rate of 20 percent?
a. $145,846
b. $150,846
c. $156,000
d.$161,000
Part 2: Which of the following can Holly not deduct or exclude?
a. Unemployment tax paid by Kazee, Inc
b. Worker's compensation paid by Kazee, Inc.
c. All $10,000 paid into retirment
d. None of the above
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started