Healthwise Ambulance requires its employees to be on 24-hour call and consequently gives them $800 per month housing allowance and a $200 per month food allowance.Ron,an employee of Healthwise,receives a salary of $40,000 per year (this does not include the allowances).Ron will be taxed each year on

Question

Quizplus · Accepted Answer

Ron will be taxed on his total income, which includes his salary and allowances. His salary is $40,000, and his allowances are $800 (housing) + $200 (food) per month, totaling $1,000 per month or $12,000 per year. Therefore, his taxable income is $40,000 + $12,000 = $52,000.

Healthwise Ambulance Requires Its Employees to Be on 24-Hour Call