How do you calculate premium taxed? Nontaxable Fringe Benefits (LO. 4)Horace is an employee of Ace Electric Company. Ace provides all employees with group term life insurance equal to twice their annual salary.Enter in the "Includable Premium" column the base amount upon which the includable premium will be determined. In the "Premium Taxed" column,enter the amount of premium to be included in Horace's gross income. Refer to the IRS Premium Table to answer the following questions.Note: If required, round the final premium taxes to the nearest cent. If any amount is zero, enter "0".Includable PremiumPremium Taxeda.Horace is 26 and earns $16,000 per year.b. Horace is 26 and earns $42,000 per year.34,000Horace is 63 and earns $42,000 per year.34,000 VC.d.Horace is 46 and earns $90,000 per year.130,000Feedback¥Check My WorkThe IRS provides a table that calculates the income from premiums paid in excess of the exclusion.Check My WorkPreviousNext

Many employers provide fringe benefits to their employees. One such benefit that is commonly…

Horace is an employee of Ace Electric Company. Ace provides all employees with group term life insurance equal to twice their annual salary. Enter in the "Includable Premium" column the base amount upon which the includable premium will be determined. In the "Premium Taxed" column, enter the amount of premium to be included in Horace's gross income. Refer to the IRS Premium Table to answer the following questions.

Horace is an employee of Ace Electric Company. Ace provides all employees with group term life insurance equal to twice their annual salary. Enter in the "Includable Premium" column the base amount upon which the includable premium will be determined. In the "Premium Taxed" column, enter the amount of premium to be included in Horace's gross income. Refer to the IRS Premium Table to answer the following questions.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter4: Income Exclusions

Section: Chapter Questions

Problem 45P

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