ynette is the CEO of publicly traded TTT Corporation and earns a salary of $272,500 in the current year. What is TTT Corporation’s after-tax cost of paying Lynette’s salary excluding FICA taxes
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Lynette is the CEO of publicly traded TTT Corporation and earns a salary of $272,500 in the current year.
What is TTT Corporation’s after-tax cost of paying Lynette’s salary excluding FICA taxes?
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- Lynette is the CEO of a publicly traded company TT company and earns a salary of $380,000 in the current year. What is TTT Corporation's after-tax cost of paying Lynette's salary excluding FICA taxes?The Diamond Corporation has two employees, Emily and Mary. Assume Diamond does not defer payroll tax payments or claim employee retention credits or sick and family leave credits. a. If Emily earns wages of $26,000 for 2020, calculate the total amount of the FICA tax that must be paid: by Emily by Diamond Corporation Total b. If Mary earns wages of $164,000 for 2020, calculate the total amount of the FICA tax that must be paid: by Mary by Diamond Corporation TotalGosney Corporation has two employees. During the current year, Clinton earns $80,000 and Trahn earns $150,000. How much social Security tax does Gosney have to pay on the salaries earned by Clinton and Trahn?
- a. Hunter Corporation has $250,000 in gross income, $125,000 in deductible business expenses, and a $12,000 business tax credit. Determine the corporation's net tax liability. b.Maria is a single individual with taxable income of $75,000 in 2018. What marginal tax rate should she use to determine the tax savings from a $2,000 deductible expense? c. Denise files her 2018 tax return on February 4, 2019. If there is no material understatement of income on her return and the return is properly signed and filed, when does the statute of limitations expire for Denise's 2018 tax return?K is the president and chief executive officer of KL, Inc., an S corporation that is owned equally byindividuals K and L. K receives a salary of $83,000, and her share of the net income, after deductingexecutive salaries, is $50,000. What is the proper income tax and payroll tax (F.I.C.A. or self‐employmenttax) treatment of each of the following to K for the current calendar year?a. The salaryb. The net income of $50,000.c. Calculate the payroll tax for KTimechex operates as a Nevada business. The employees annual earnings for the past calendar year are as follows: Will, $360,240: Adalia, $36,686: Brian, $21,190: ans Amanda, $6,000. What is Timechex's FUTA tax liability for the year?
- Kristen, the president and sole shareholder of Egret Corporation, has earned a salary bonus of $264,500 for the current year. Because of the lower tax rates on qualifying dividends, Kristen is considering substituting a dividend for the bonus. Assume that the tax rates are 24% for Kristen and 21% for Egret Corporation. Round your answers to nearest dollar, if required. a. How much better off would Kristen be if she were paid a dividend rather than salary? If Kristen were paid a bonus, she would receive s 201,020✔ after taxes. If Kristen receives a dividend rather than salary, she would receive 224,825✔ after taxes. Thus, she would be better off by receiving the dividend Feedback Check My Work b. How much better off would Egret Corporation be if it paid Kristen a salary rather than a dividend? The net after-tax cost of the bonus for Egret Corporation would be s 7,975 X Therefore, Egret would be better off by s be s Check My Work 208,955✔ and the net after-tax cost for the dividend would…1. Luis Gomez is an operations manager for a large manufacturer. He earned $74,500 in 2018 and plans to contribute the maximum allowed to the firm's 401(k) plan. Assuming that Luis is in the 25 percent tax bracket, calculate his taxable income and the amount of his tax savings. Assume an individual employee can put as much as $18,500 into a tax-deferred 401(k) plan. The standard deduction for 2018 is $12,000. If necessary, round the answer for tax savings to the nearest cent. 1A. Taxable Income: 1B. Amount of his tax savings: 2. How much did it actually cost Luis on an after-tax basis to make this retirement plan contribution? If necessary, round the answer to the nearest cent. $_______Mike Barton owns Barton Products, In. The corporation has 30 employees. Barton Corporation expects $800,000 of net income before taxes in 2021. Mike is married and files a joint return with his wife, Elaine, who has no carnings of her own. Mike and Elaine have no other income, file a joint tax return, and claim the standard deduction. Mike's salary is $200,000 per year (already deducted in computing Barton Corporation's $800,000 net income).A. Identify and write down the given facts. Then, calculate the tax liability for Barton Corporation and for Mike and Elaine. B. Should Mike increase his salary from Barton by $50,000 to reduce the overall tax burden to himself and Barton Products? Because of the Social Security cap, the corporation and Mike each would incur a 1,45% payroll tax with the corporate portion being deductible.
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