Salem corporation is considering implementing a 401k

Assignment Help Accounting Basics

Reference no: EM13581292

Salem Corporation is considering implementing a 401k program for its employees. The program plan will include the company matching at 50% of the employee's contribution up to 6% contribution. The Human Resources manager proposing this plan feels it will reduce turnover, improve morale, and provide a competitive edge when recruiting new employees. The HR manager has estimated Salem's annual contribution to be $300,000 and the savings to be $70,000 in employee turnover costs and improved performance. Management is concerned about this additional cost.

In addition, you should discuss the 401k limits and special treatment for highly compensated employees. Prepare a response (750-1,000) words documenting how, as a tax analyst, you see this program, and note any tax implications related to the program.

Reference no: EM13581292

Questions Cloud

A car enters a freeway entrance ramp going 35 miles per : a car enters a freeway entrance ramp going 35 miles per hour. it accelerates at a rate of 2.11nbspmss up the entrance

Blackrock company received a 6-month 12 note for 100000 : blackrock company received a 6-month 12 note for 100000 from its president on november1 2010. the note is due on april

An outside supplier is interested in producing the item for : an outside supplier is interested in producing the item for sandusky. if the item is produced outside sandusky could

Production standards based on engineering analysis : a cost analyst for stamper manufacturing co. has assembled the following data about the model 24 stamp padthe piece of

Salem corporation is considering implementing a 401k : salem corporation is considering implementing a 401k program for its employees. the program plan will include the

Calculate the accounts receivable turnover ratio for 2010 : calculate the true cash balance. lo 1. use the following information to calculate the true reconciled cash balancebank

Project a will cost 473200 has an expected useful life of : company is considering two different mutually exclusive capital expenditure proposals. project a will cost 473200 has

350 on november 15 2009 sandra cook a newly hired cost : 3.50 on november 15 2009 sandra cook a newly hired cost analyst at demgren company was asked to predict overhead costs

Aretha has an agi of less than 100000 and a 25 percent : aretha has an agi of less than 100000 and a 25 percent marginal tax rate. during the year she reports a 36000 loss from

User Account

All Pages