Income Tax Compensation project

The details and requirements are in the document I provided, please make sure you can complete it before bidding, thank you.

Project for Compensation and Retirement
ACT 4494
What is your dream job?
Create a dream job for yourself. The job does not need to make you rich, but it does need to support you
and your family. If you would like the job to make you rich, go for it! For this project, assume that you
have a spouse and two dependents (they don’t have to be children) who rely on you for support.
Decide on your compensation. Make sure it is reasonable for the position you have created for yourself.
Look online if you are not sure what is reasonable for your chosen job. Your total compensation package
should contain at least the following:
-Salary
-at least 3 Taxable Fringe Benefits
-at least 3 Non taxable Fringe Benefits
Assume that any nontaxable fringe benefits are provided to you at the maximum amount. (See Chapter 10
in your book. There is a helpful chart available.)
For Taxable Fringes, determine the value, using reasonable assumptions or outside research. If you are
unsure of the value of some of the benefits, ask the people around you who have benefits. (For example,
for health insurance, find the actual value of a policy either online or by asking others who have a policy.)
Determine the amount of total compensation that results from your package, and the taxable income that
results using the MFJ filing status, 2 dependents, and the standard deduction.
Don’t see children in your future? No problem: maybe your mom lives with you or your favorite uncle.
But whichever dependents you have, be sure to include their impact in your life financially. (For example,
college costs for children, burial or long term care costs for parents, etc.)
In addition, as a responsible adult, you need to start planning for retirement. Choose a work sponsored
retirement vehicle (plan), making sure that it goes with the occupation you have chosen, and maximize
contributions to that plan. Explain your employer’s plan and how it works. For example, many employers
use a 401(k) plan for their employees. In addition, choose a non work-related retirement vehicle (like an
IRA) to invest in. Plan to maximize your contributions, in every possible way (consider your spouse’s
contributions also). Consider the investment advantages and any tax consequences. What investments are
you using: mutual funds, stocks, bonds? What is your expected rate of return on your investments?
Again, research the subject and use reasonable rates to calculate your returns. Thi rate of return must be
reasonable; a 20% return is not reasonable! Predict how your retirement plan will provide for you in
retirement. At what age can you retire, and what will be your estimated annual income? For how many
years? Will you need a second job? If so, what will it be? You all have the skills to do this, using the time
value of money and present and future value of payments and/or annuities and lump sums. If you are
stuck on this part, see your intermediate or introductory financial accounting text for assistance. There are
also retirement calculators online that you may utilize. If you do, be sure to cite the website.
This is a comprehensive project. You are covering 2 chapters (12 and 13) of information, and the finished
product should reflect that. I will be looking at use of factual information, creativity, and thoroughness in
answering all of the questions asked. Your grade will reflect the time you invest in this project so treat it
seriously. For those of you who are worried about your grades, this is a chance to pull them up. This
project will be worth the same as a tax return. Put some effort into this project and impress me! This
project will distinguish the A+ students from everyone else! Feel free to work in groups, but each
individual is required to turn in their own project, and each project must be unique. Your group should be
considered your financial advisors, there to help you make your financial decisions. Please include a list
of financial advisors when you turn your project in.
REQUIRED:
-A clear list of all compensation on an annual basis (presented in a spreadsheet format). Be sure to total
the compensation, and label each item as salary, taxable fringe, non-taxable fringe. In your narrative, tell
me why you chose those particular benefits to be included in your compensation. A superstar salary does
not get you out of the rest of the project, so plan accordingly.
-A clearly stated plan for retirement investing, including amount per pay period invested, term in years,
value in the end, and annual payments to you after retirement, and your age at retirement. Be sure to
include retirement savings from work and non work sources. Use realistic assumptions in your interest
rate and investment horizon. Include any other sums that you may receive to supplement your retirement,
including social security. Document the formulas or calculators you used to arrive at your answer, and
any information sources you used, including people you talked to. Why did you choose the investments
and methods you used?
-Who are your dependents? What is your age and your spouse’s age? Is there an ex-spouse? If there is an
ex-spouse, how does alimony play a part in your tax planning? What were the details of the divorce?
(Monetary details only!!!) (You need to still have a spouse for tax purposes so assume you remarried!)
-If your dependents are children, are you planning for their college education costs, and how does that
impact your retirement savings? How are you planning for their education? If your dependent is an aging
parent, how are you coping with any medical bills or long term care costs?
-a list of all information sources
-Feel free to ask me questions if you do not understand parts of the assignment. DO NOT LEAVE THIS
TO THE LAST MINUTE!!!!!
Due in class, on paper, Tuesday, December 5. If you use Excel and/or Word to create the assignment,
please also upload the files to Canvas.
Be sure to answer all of the questions required for maximum points. Everyone can receive the maximum
points for this assignment simply by being sure you answer each question and address each point.
Project for Compensation and Retirement
ACT 4494
What is your dream job?
Create a dream job for yourself. The job does not need to make you rich, but it does need to support you
and your family. If you would like the job to make you rich, go for it! For this project, assume that you
have a spouse and two dependents (they don’t have to be children) who rely on you for support.
Decide on your compensation. Make sure it is reasonable for the position you have created for yourself.
Look online if you are not sure what is reasonable for your chosen job. Your total compensation package
should contain at least the following:
-Salary
-at least 3 Taxable Fringe Benefits
-at least 3 Non taxable Fringe Benefits
Assume that any nontaxable fringe benefits are provided to you at the maximum amount. (See Chapter 10
in your book. There is a helpful chart available.)
For Taxable Fringes, determine the value, using reasonable assumptions or outside research. If you are
unsure of the value of some of the benefits, ask the people around you who have benefits. (For example,
for health insurance, find the actual value of a policy either online or by asking others who have a policy.)
Determine the amount of total compensation that results from your package, and the taxable income that
results using the MFJ filing status, 2 dependents, and the standard deduction.
Don’t see children in your future? No problem: maybe your mom lives with you or your favorite uncle.
But whichever dependents you have, be sure to include their impact in your life financially. (For example,
college costs for children, burial or long term care costs for parents, etc.)
In addition, as a responsible adult, you need to start planning for retirement. Choose a work sponsored
retirement vehicle (plan), making sure that it goes with the occupation you have chosen, and maximize
contributions to that plan. Explain your employer’s plan and how it works. For example, many employers
use a 401(k) plan for their employees. In addition, choose a non work-related retirement vehicle (like an
IRA) to invest in. Plan to maximize your contributions, in every possible way (consider your spouse’s
contributions also). Consider the investment advantages and any tax consequences. What investments are
you using: mutual funds, stocks, bonds? What is your expected rate of return on your investments?
Again, research the subject and use reasonable rates to calculate your returns. Thi rate of return must be
reasonable; a 20% return is not reasonable! Predict how your retirement plan will provide for you in
retirement. At what age can you retire, and what will be your estimated annual income? For how many
years? Will you need a second job? If so, what will it be? You all have the skills to do this, using the time
value of money and present and future value of payments and/or annuities and lump sums. If you are
stuck on this part, see your intermediate or introductory financial accounting text for assistance. There are
also retirement calculators online that you may utilize. If you do, be sure to cite the website.
This is a comprehensive project. You are covering 2 chapters (12 and 13) of information, and the finished
product should reflect that. I will be looking at use of factual information, creativity, and thoroughness in
answering all of the questions asked. Your grade will reflect the time you invest in this project so treat it
seriously. For those of you who are worried about your grades, this is a chance to pull them up. This
project will be worth the same as a tax return. Put some effort into this project and impress me! This
project will distinguish the A+ students from everyone else! Feel free to work in groups, but each
individual is required to turn in their own project, and each project must be unique. Your group should be
considered your financial advisors, there to help you make your financial decisions. Please include a list
of financial advisors when you turn your project in.
REQUIRED:
-A clear list of all compensation on an annual basis (presented in a spreadsheet format). Be sure to total
the compensation, and label each item as salary, taxable fringe, non-taxable fringe. In your narrative, tell
me why you chose those particular benefits to be included in your compensation. A superstar salary does
not get you out of the rest of the project, so plan accordingly.
-A clearly stated plan for retirement investing, including amount per pay period invested, term in years,
value in the end, and annual payments to you after retirement, and your age at retirement. Be sure to
include retirement savings from work and non work sources. Use realistic assumptions in your interest
rate and investment horizon. Include any other sums that you may receive to supplement your retirement,
including social security. Document the formulas or calculators you used to arrive at your answer, and
any information sources you used, including people you talked to. Why did you choose the investments
and methods you used?
-Who are your dependents? What is your age and your spouse’s age? Is there an ex-spouse? If there is an
ex-spouse, how does alimony play a part in your tax planning? What were the details of the divorce?
(Monetary details only!!!) (You need to still have a spouse for tax purposes so assume you remarried!)
-If your dependents are children, are you planning for their college education costs, and how does that
impact your retirement savings? How are you planning for their education? If your dependent is an aging
parent, how are you coping with any medical bills or long term care costs?
-a list of all information sources
Be sure to answer all of the questions required for maximum points. Everyone can receive the maximum
points for this assignment simply by being sure you answer each question and address each point.