Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help me solve part C. The income tax and FICA taxes. Thank you! In 2022, Kwon Ah Bo is an employee at Sungsam Industries.
Please help me solve part C. The income tax and FICA taxes. Thank you!
In 2022, Kwon Ah Bo is an employee at Sungsam Industries. Kwon is paid wages of $50,000 and is also a participant in the Sungsam 401(k) plan. Kwon contributes 6 percent of her salary to the 401(k) and Sungsam matches the first 3 percent of employee contributions. a. Describe how Kwon will be taxed on her 6 percent contribution to the 401(k) plan in 2022. Kwon will contribute $ to a qualified plan and thus pay tax on that amount currently. Feedback Check My Work Correct b. Describe how Kwon will be taxed on the 3 percent match provided by Kwon's employer and contributed to the 401k plan. Kwon be taxed currently on the employer match of & . Note that total employee and employer contributions 2022 maximum of $20,500 for 401(k) plan contributions. Feedback Check My Work Correct c. Compute the amount of wages subject to (i) income tax and (ii) FICA taxesStep 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