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She will be an accounting consultant and will be working on evaluating product line returns, budget variances, and preparing forecasts for several different companies.
She will be an accounting consultant and will be working on evaluating product line returns, budget variances, and preparing forecasts for several different companies. However, she will work at different companies and will be an independent contractor. She will earn $75,000 per year, and she will not be reimbursed her for any travel costs that she incurs related to business travel between their locations. The travel is all local, and the costs are estimated to be $2,500 per year. She will have to purchase her own health insurance policy, which will cost approximately $4,000 per year. Provide a response to Amy that explains the tax considerations in these options, especially the difference in employment status between these two offers (7 points). Also indicate which position you think is better and explain why (3 points). Be sure to use numbers to support your recommendation. Question 3 (10 points) Amy is interviewing for jobs. She has two offers that she is considering and would like your advice as to any tax considerations. The first offer is from a food manufacturing company. She will be a staff accountant and will be working on evaluating product line returns, budget variances, and preparing forecasts. She will earn $50,000 per year, and the company will reimburse her for any travel costs that she incurs related to business travel between their locations. The company provides full health insurance coverage. The second offer is from a consulting firm that places people with companies on a project by project basis. While there are no guarantees, the consulting firm has an exceptional track record and has provided strong assurance that she will work full time for the entire year. Amy's research supports the strong reputation of the consulting firm, so she is not worried that there will not be enough work for her. She will be an accounting consultant and will be working on evaluating product line
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