Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Your corporation is offering a potential employee a salary of $90,000. Your corporation is in the 30% federal tax bracket, and a 10% state tax
Your corporation is offering a potential employee a salary of $90,000. Your corporation is in the 30% federal tax bracket, and a 10% state tax bracket. FICA would be 15.3%, of which is deductible. She would be in a 25% federal tax bracket and a 6% state tax bracket. What is the corporation's after-tax cost? What is the employee's after-tax cash flow?
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