Munabhai Required information.Problem 13-54 (LO 13-1) (Algo)[The following information applies to the questions displayed below.]Javier recently graduated and started his career with DNL Incorporated DNL provides a defined benefit plan to aliemployees. According to the terms of the plan, for each full year of service working for the employer, employees receive abenefit of 1.5 percent of their average salary over their highest three years of compensation from the company. Employeesmay accrue only 30 years of benefit under the plan (45 percent).Determine Javier's annual benefit on retirement, before taxes, under each of the following scenarios (Use Exhibit 13-1):Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave noanswers blank. Enter zero if applicable.Problem 13-54 Part c (Algo)c. Javier works for DNL for six years and three months before he leaves for another job. Javier's annual salary was $123,000, $133,000,$142,800, and $150,200 for years 4, 5, 6, and 7, respectively. DNL uses a five-year cliff vesting schedule.

Vesting schedules are used in retirement and employee benefit plans to determine when employees…

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SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter19: Deferred Compensation

Section: Chapter Questions

Problem 14CE

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In EB13, you prepared the journal entries for Janet Evanovich, an employee of Marc Associates. You have now been given the following additional information: June is the first pay period for this employee. FUTA taxes are 0.6% and SUTA taxes are 5.4% of the first $7,000 paid to the employee. FICA Social Security and FICA Medicare match employee deductions. The employer is responsible for 60% of the health insurance premium. The employer matches 50% of employee pension plan contributions. Using the information from EB13 and the additional information provided: A. Record the employer payroll for the month of June, dated June 30, 2017. B. Record the payment in cash of all employer liabilities only on July 1.
Javier recently graduated and started his career with DNL Inc. DNL provides a defined benefit plan to all employees. According to the terms of the plan, for each full year of service working for the employer, employees receive a benefit of 1.5 percent of their average salary over their highest three years of compensation from the company. Employees may accrue only 30 years of benefit under the plan (45 percent). Determine Javier’s annual benefit on retirement, before taxes, under each of the following scenarios (Use Exhibit 13-1): (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answers blank. Enter zero if applicable.) Q: Javier works for DNL for six years and three months before he leaves for another job. Javier’s annual salary was $93,000, $103,000, $109,800, and $115,700 for years 4, 5, 6, and 7, respectively. DNL uses a five-year cliff vesting schedule.
Javier recently graduated and started his career with DNL Inc. DNL provides a defined benefit plan to all employees. According to the terms of the plan, for each full year of service working for the employer, employees receive a benefit of 1.5 percent of their average salary over their highest three years of compensation from the company. Employees may accrue only 30 years of benefit under the plan (45 percent). Determine Javier’s annual benefit on retirement, before taxes, under each of the following scenarios (Use Exhibit 13-1): (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answers blank. Enter zero if applicable.) Javier works for DNL for six years and three months before he leaves for another job. Javier’s annual salary was $93,000, $103,000, $109,800, and $115,700 for years 4, 5, 6, and 7, respectively. DNL uses a five-year cliff vesting schedule. Q: what is annual before-tax benefit ?
Dow, 42, is a manager for Winter Company. In addition to his $83,000 salary, he receives the following benefits from Winter during the current year: Winter pays all its employees' health and accident insurance. Premiums paid by Winter for Dow's health insurance are $1,500. Winter provides all employees with group term life insurance coverage equal to their annual salary. Premiums on Dow's $83,000 in coverage are $830. Winter has a flexible benefits plan in which employees may participate to pay any costs not reimbursed by their health insurance. Dow has $2,700 withheld from his salary under the plan. His actual unreimbursed medical costs are $3,360. Winter pays Dow the $2,700 paid into the plan during the year. All management-level Winter employees are entitled to employer-provided parking. The cost of Dow's parking in a downtown garage is $3,500 for the year. Winter pays Dow’s $150 monthly membership fee to a private health club located in the building in which Dow works. Dow uses…
Kenen Wiseman is an employee of Dimenionworks Designs in New Mexico. She received the following achievement awards from her employer during 2019: Best safety plan: Santa Fe County: $1,460 To emergency plan layout, New Mexico: $1,925 Ten-year employee award: $815 The achievement awards are eligible under qualified plan. Required: How much of her achievement award income is taxable?
Which of the following statements is correct regarding limitations on employer's contributions to qualified retirement plans in 2021? a. Defined benefit plans are limited to an annual benefit to an employee of the lesser of $58,000 or 100% of the employee's average compensation for the highest three years. b. Defined contribution plan contributions are limited to the lesser of $230,000 or 25% of an employee's compensation. c. Defined contribution plan contributions are limited to the lesser of $58,000 or 100% of an employee's compensation. d. If an employer has more than one type of qualified plan, a maximum deduction of 100% of compensation is allowed.
In 2021, Maggy (34 years old) is an employee of YBU Corporated YBU provides a 401(k) plan for all its employees. According to the terms of the plan, YBU contributes 50 cents for every dollar the employee contributes. The maximum employer contribution under the plan is 15 percent of the employee’s salary (if allowed, YBU contributes until the employee has contributed 30 percent of her salary). (Use Exhibit 13-2) a. Maggy worked for YBU Corporation for 3½ years before deciding to leave effective July 1, 2021. Maggy’s annual salary during this time was $45,000, $52,000, $55,000, and $60,000 (she only received half of her $60,000 2021 salary). Assuming Maggy contributed 8 percent of her salary (including her 2021 salary) to her 401(k) account, what is Maggy’s vested account balance when she leaves YBU (exclusive of account earnings)? Assume YBU uses three-year cliff vesting.

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