Is this correct? If not please help me out.
1 answer:
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Answer:
To Calculate the monetary value of both jobs, you would have to calculate the percent tax rate of each salary and add the nontaxable benefit after taxes.
Step-by-step explanation:
Reminder: since the 25% is a tax rate which we need to <u>subtract</u> from the salary, 75% would be what is left over from the salary after taxes.
<u>Job 1:</u> Job 1 pays a salary of $41,000 and $5,525 of nontaxable benefits. So we calculate the 75% that is left after taxes and add the benefits afterwards.
<em><u>So the monetary value of Job 1 would be $36,275</u></em>
<u>Job 2:</u> Job 2 pays a salary of $40,400 and $7,125 of nontaxable benefits. So we calculate the 75% that is left after taxes and add the benefits afterwards.
<em><u>So the monetary value of Job 2 would be $37,425</u></em>