Question

joseph is eligible for a non taxable life insurance benefit with an annual premium of $400 paid entirely by his employer. Assuming Joseph is in a 28% bracket, how much would he have to earn to pay for this benefit with after-tax dollars

Answer 1

Based on the fact that the non-taxable life insurance benefit is $400, the amount that Joseph would have to earn is $555.56.

How much should Joseph earn?

This can be found as:

= Non-taxable benefit amount / (1 - tax bracket rate)

Solving gives:

= 400 / (1 - 28%)

= 400 / 0.72

= $555.56

Find out more on non-taxable benefits at brainly.com/question/1581158.

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