A company pays salary of $75,000 to an employee. Both employer and employee cont
ID: 2728215 • Letter: A
Question
A company pays salary of $75,000 to an employee. Both employer and employee contributes $7,500 each in qualified retirement plan for the employee. Marginal tax rates for employer and employee are 28% and 15% respectively. What is the total tax savings for both employer and employee combined? What steps to solve this problem in calculator. ? A company pays salary of $75,000 to an employee. Both employer and employee contributes $7,500 each in qualified retirement plan for the employee. Marginal tax rates for employer and employee are 28% and 15% respectively. What is the total tax savings for both employer and employee combined? What steps to solve this problem in calculator. ? A company pays salary of $75,000 to an employee. Both employer and employee contributes $7,500 each in qualified retirement plan for the employee. Marginal tax rates for employer and employee are 28% and 15% respectively. What is the total tax savings for both employer and employee combined? What steps to solve this problem in calculator. ?Explanation / Answer
Tax saving of employer:
= $7,500×28%
= $2,100
Tax saving of employee:
= $7,500×15%
= $1,125
Total tax saving = $3,225
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