Niklas operates a planning business in the greater Boring, OR, community. Niklas has been offered a...
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Niklas operates a planning business in the greater Boring, OR, community. Niklas has been offered a position as an employee of a competing LLC. The numbers below are Niklas' best estimates of his cash flow as an independent contractor and as an employee. The estimates of retirement and medical are comparable in the two scenarios. As an employee, the company will match Niklas' contributions and the company will provide the medical insurance. Calculate Niklas' after-tax cash flow in the two scenarios. Employee--compensation Social Security MHI Medical Retirement QBI Taxable income Change in tax Cash flow Unemployment and Workers' Comp Contractor--net revenue before the following Social Security MHI Medical Retirement QBI Taxable income Change in tax Cash flow $11,400 $6,000 $11,400 $12,000 $98,500 $124,250 Niklas operates a planning business in the greater Boring, OR, community. Niklas has been offered a position as an employee of a competing LLC. The numbers below are Niklas' best estimates of his cash flow as an independent contractor and as an employee. The estimates of retirement and medical are comparable in the two scenarios. As an employee, the company will match Niklas' contributions and the company will provide the medical insurance. Calculate Niklas' after-tax cash flow in the two scenarios. Employee--compensation Social Security MHI Medical Retirement QBI Taxable income Change in tax Cash flow Unemployment and Workers' Comp Contractor--net revenue before the following Social Security MHI Medical Retirement QBI Taxable income Change in tax Cash flow $11,400 $6,000 $11,400 $12,000 $98,500 $124,250
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Employee Scenario Compensation 98500 Social Security 62 98500 62 6097 M... View the full answer
Related Book For
Concepts In Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
Posted Date:
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