Helen Ming receives a travel allowance of $120 each week from her company for time away from home. If this allowance is taxable

Question

3 years ago

7

and she has a 28 percent income tax rate, what amount will she have to pay in taxes for this employee benefit

1 answer:

Mazyrski [523] · Answer 1 · 2022-03-06T02:40:22+03:00

Answer:

$1,747.2

Explanation:

Calculation to determine what amount will she have to pay in taxes for this employee benefit

First step is to determine the Annual travel allowance

Using this formula

Annual travel allowance=Weekly allowance × 52 weeks

Let plug in the formula

Annual travel allowance=$120 × 52 weeks

Annual travel allowance=$6,240

Now let determine the Annual tax

Using this formula

Annual tax=Annual travel allowance × Tax rate

Let plug in the formula

Annual tax=$6,240 × 0.28

Annual tax=$1,747.2

Therefore the amount that she will have to pay in taxes for this employee benefit is $1,747.2