How much would jill benefit in after-tax dollars

Reference no: EM13905361

In 2015, Jill, age 35, received a job offer with two alternative compensation packages to choose from. The first package offers her $90,000 annual salary with no qualified fringe benefits, requires her to pay $3,500 a year for parking, and will purchase life insurance at a cost of $1,000. The second package offers $80,000 annual salary, employer-provided health insurance, annual free parking (worth $300 per month), $200,000 of life insurance (purchasing on her own would have been $1,000 annually), and free flight benefits (she figures that it will save her $5,000 per year). If Jill chooses the first package, she would pur- chase the health and life insurance benefits herself at a cost of $5,000 annually after taxes and spend another $5,000 in flights while traveling. Assume her marginal tax rate is 28 percent.

a) Which compensation package should she choose, and by how much would she benefit in after-tax dollars by choosing this compensation package in- stead of the other compensation package?

b) Assume the first package offers $100,000 salary with no qualified benefits in- stead of $90,000 salary plus benefits. Which compensation package should she choose, and by how much would she benefit in after-tax dollars by choosing this package?

Reference no: EM13905361

Questions Cloud

Find the y-intercept of the line : Find the y-intercept of the line represented by the following equation. -2x + 2y = 16 and Write the equation of the line with slope -4 and y-intercept (0, -9)

Describe some ways in which taxes affect political process : Describe some ways in which taxes affect the political process in the United States. Courtney recently received a speeding ticket on her way to the university.

What are some aspects of business that require knowledge : What are some aspects of business that require knowledge of taxation? What are some aspects of personal finance that require knowledge of taxation?

How much would jill benefit in after-tax dollars : Which compensation package should she choose, and by how much would she benefit in after-tax dollars by choosing this package?

How much would sylvana benefit in after-tax dollars : Which compensation package should she choose and by how much would she benefit in after-tax dollars by choosing this package?

A company reports the following sales related information : A company reports the following sales related information:

Determine santinis taxable income and income tax liability : Assume that Santini does not itemize deductions for the year. Determine Santini's taxable income and income tax liability for 2015.

Administrative agencies that permit lay representation : 1. List two administrative agencies that permit lay representation? 2. The largest, voluntary association for lawyers and the one that drafts model codes of professional responsibility is called?

User Account

All Pages