Will be the tax implications of program

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Reference no: EM13165604 , Length: 644 Words

JIM 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 JIM'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.

Explain the 401 K limits and special treatment for highly-compensated employees.

Document how, as a tax analyst.

Document what, if any, will be the tax implications of this program.

Reference no: EM13165604

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