Answer:
a) using the 2020 tax schedule:
Emily's taxable income = $153,800 - $12,200 = $141,600
Emily's tax liability = $14,605.50 + [($141,600 - $85,525) x 24%] = $28,063.50
Emily's after tax compensation = $153,800 - $28,063.50 = $125,736.50
b and c ) if Emily (or Rick?) get a $102,500 offer that includes benefits worth $4,900 that are not taxable:
taxable income = $102,500 - $12,200 = $90,300
tax liability = $14,605.50 + [($90,300 - $85,525) x 24%] = $15,751.50
after tax compensation = $102,500 - $15,751.50 + $4,900 = $91,648.50
