Leslie, age 27, is an employee of Naples Corp. which provides the following nondiscriminatory fringe benefits received in 2021:

• insurance premiums of $1,050 for salary continuation payments. Under the plan, Leslie will receive her regular salary in the event she is unable to work due to illness. Leslie collected $7,100 on the policy to replace lost wages while she was ill during the year.
• $5,500 tuition under a plan available to all full-time employees. Leslie is a part-time student working on her bachelor's degree in accounting.
• hospitalization insurance premiums for Leslie and family. The cost of the coverage for Leslie is $3,000 per year, and the additional cost for dependents is $3,775 per year. The plan has a $2,000 deductible, but Naples contributed $1,500 to the Health Savings Account (HSA). Leslie withdrew only $1,000 from the HSA, and the account earned $6.92 interest during the year.

For each of the following, what is the amount to be included in Leslie's gross income? Explain your answer. Where calculations are required, show your work. You may use Word or Excel.

1. Insurance premiums for salary continuation payments
2. The salary continuation payments collected on the salary continuation policy to replace lost wages while she was ill during the year.
3. Tuition reimbursement under a plan available to all full-time employees
4. Hospitalization insurance premiums for Leslie and the family.

Answer rating: 100% (QA)

1 Insurance Premiums for Salary Continuation Payments Leslie received 7100 in salary continuation pa... View the full answer