Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the net Form W-2 wages? Paul earned salary of $88,000 (before subtracting his 401(k) and flexible spending plan contributions and before adding any

image text in transcribed

What is the net Form W-2 wages?

Paul earned salary of $88,000 (before subtracting his 401(k) and flexible spending plan contributions and before adding any additional possible income items described in paragraphs 4-7, 11). He contributed $7,200 to his 401(k) account, and he contributed $2,600 to his flexible spending account to purchase additional health insurance. ASCI paid $632 of whole life insurance premiums to cover Paul's personal whole life insurance policy with a face value of $50,000. ASCI also paid health club dues of $825 to a nearby health club on Paul's behalf. Taking advantage of ASCI's educational assistance program, during the fall Paul enrolled in two graduate engineering classes at a local college. ASCI paid his tuition, fees, and other course-related costs of $5,300. Paul received free parking in the company's security garage that would normally cost $200 per month. Paul manages the safety program for ASCI. In recognition of his superior handling of three potential crises during the year, Paul was awarded the Employee Safety Award on December 15. The cash award was $400. Paul slipped on a wet spot in front of a computer store last July. He broke his ankle and was unable to work for two weeks. He incurred $1,300 in medical costs, all of which were paid by the owner of the store. The store also gave him $1,000 for pain and suffering resulting from the injury. ASCI did not pay his salary during the two weeks he missed because of the accident. However, ASCI's disability insurance plan paid him $1,500 in disability pay for the time he was unable to work. Under this plan, ASCI pays the premiums of $500 for the disability insurance as a taxable fringe benefit. The disability plan premiums and the disability benefit payments were not included in Pauls W-2 wages reported in paragraph 3.

this is tax class

Gross Income: 0 0 0 0 Form W-2 Gross wages from Atom Systems Less: $401(k) contributions Less: Flexible spending account payments Plus: Disability plan premiums/benefits Plus: Premiums for a whole life policy Plus: Health Club membership dues Plus: Educational assistance payments Plus: Free parking Plus: Employee safety award Net Form W-2 0 0 0 0 0 0 Gross Income: 0 0 0 0 Form W-2 Gross wages from Atom Systems Less: $401(k) contributions Less: Flexible spending account payments Plus: Disability plan premiums/benefits Plus: Premiums for a whole life policy Plus: Health Club membership dues Plus: Educational assistance payments Plus: Free parking Plus: Employee safety award Net Form W-2 0 0 0 0 0 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

American Public School Finance

Authors: William A. Owings, Leslie S. Kaplan

1st Edition

0495807834, 9780495807834

More Books

Students also viewed these Finance questions