1).pdf not have the power to tax the award. 2. The contributions to the city\'s
ID: 2544285 • Letter: 1
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1).pdf not have the power to tax the award. 2. The contributions to the city's butions are placed in a trust and are used of the city of Greenville must make mandatory health benefit plan. The employees' contri- y for the employees' benefits. The employees believe that because they are required to make the contributions from their base salaries, the result should be the same as if the employer made the ART 2 Gross Income contribution and had reduced their salaries by the amount of the contributions Therefore, the employees believe they should be permitted to exclude the payments from gross income. The employees have asked you to research the issue. Research Problem 3. Your client, John Butler, is an avid Houston Astros fan. Last March at the Astros home opener, as a result of a random drawing of those in atten- dance at the game, John won 300 Shipley Do-Nut coupons. Each coupon entitled him to a cup of coffee and a free doughnut or a dozen doughnut holes. John used some of the coupons (approximately 20), but he found that eating so many doughnuts directly conflicted with his goal of losing weight. The unused cou- nons eynired on lanuary 1. 2017, Thus, John was surprised when he received a FormExplanation / Answer
In.the given situation it is clearly evident that the contribution is mandatory from the salaries of the employees and also it is not mentioned that the employer is making or contributing any amount for the same .
It is also specifically given that the employees contributions and no where mentioned about the employers part of contribution whicheans it is made from the income which they have earned.
So, it is proper that it is to be included in the gross income and not very appropriate to exclude the same from gross salary because the term gross salary refers to all the incomes earned by the employee prior to any adjustments or deductions.
Therefore, the intention of the employees to exclude the payments from gross income is incorrect and it shall be included in the gross income.
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