Question

Jamal age 52, is a manger for triple W company. His annual Salary is 100,ooo and he receives the following benefits during the Current year. • Triple w pays for all employees' health and accident insurance Triple W pays $4,000 for Jamal health Insurance during the year. vvvv • Triple W pays parking Cost for all management Jamal's parking Cost 420 month. & Triple w pays Jamal's annual membership dues of 450 to Society OF Human Resource Management association. The company ako subscibes to serveal management Jourmbers for Jamal costing $650 a year PPPPPP • Jamal consumpetion of Coffee provided by triple W is valued at $700 a year. Which teams and amounts are reported w Jamals taxable income? UPPA

Answer 1

Please find below the table showing nature of expense and taxable or not-taxable

Tax applicability for Employee - Jamal
Sl. No.	Nature of Expense	Taxable	Not Taxable	Explanation
1	Annual Salary	110,000.00	-
2	All Employee health and Accident Insurance	-	4,000.00	> Company pays for all employees and not only to a key-employee; > It is accident and health insurance and not life insurance; in fact life insurance up to death benefit of $ 50,000 or less is not taxable
3	Parking Cost	420.00		> Additional benefit provided by employer and hence taxable; > with an exception that if an employee is physically disabled, then it is not taxable
4	Annual Membership fee	450.00		> If the membership is just to upgrade knowledge, then it is taxable by employer but employee can claim as deductible expense: > But if the membership is required on day to day employment service with employer, then not taxable by employer; > Thus, need to see the purpose of the association and reason employee associated with
5	Consumption of coffee		700.00	Not Taxable