Bill Mason is considering two job offers. Job 1 pays a salary of \$41,300 with \$5,525 of nontaxable employee benefits. Job 2 pays a salary of

Question

Bill Mason is considering two job offers. Job 1 pays a salary of \$41,300 with \$5,525 of nontaxable employee benefits. Job 2 pays a salary of \$40,400 and \$7,125 of nontaxable benefits. Use a 25 percent tax rate.

Calculate the monetary value for both the jobs.

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2 weeks 2021-09-12T07:53:33+00:00 1 Answer 0

To Calculate the monetary value of both jobs, you would have to calculate the percent tax rate of each salary and add the nontaxable benefit after taxes.

Step-by-step explanation:

Reminder: since the 25% is a tax rate which we need to subtract from the salary, 75% would be what is left over from the salary after taxes.

Job 1:   Job 1 pays a salary of \$41,000 and \$5,525 of nontaxable benefits. So we calculate the 75% that is left after taxes and add the benefits afterwards.

So the monetary value of Job 1 would be \$36,275

Job 2: Job 2 pays a salary of \$40,400 and \$7,125 of nontaxable benefits. So we calculate the 75% that is left after taxes and add the benefits afterwards.

So the monetary value of Job 2 would be \$37,425