Samson Company offers its employees a cafeteria plan. Julie is allotted $5000 to spend on fringe benefits. She chooses a health insurance plan that costs $2500 per year, a $50000 whole life insurance policy with a $500 annual premium, and the remaining $2000 she uses for the company’s child and dependent care program. What is Julie’s taxable compensation if her salary is $40000?

Answer rating: 100% (QA)

Answer All fringe benefits are taxable except those define under rule 2 fringe benefit ta... View the full answer