Explain why self-employed taxpayers generally pay double the amount of FICA taxes that regular wage earners do.

Question:

Explain why self-employed taxpayers generally pay double the amount of FICA taxes that regular wage earners do. Discuss.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals Of Taxation 2015

ISBN: 9781259293092

8th Edition

Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone

See More Books

Question Posted: Sep 20, 2017 10:34 AM

See More Questions

December 15 Deposited with City Bank the amount of FICA taxes and federal income taxes for the November payrolls Pay the balance in the two FICA Taxes Payable accounts 19 and 20 and Employees FIT...
Imagine Samsung manages to double the amount of phones sold by expanding the market. What will be their new market share this year and how large is the market as a whole?
Why do rapidly growing firms generally pay no dividends?
Instructions: Read the footnotes included in the financial statements for H & B Bakery, then answer the following questions. *The exact requirement of this question, is to read the statements below...
Outline the major differences between Java (or any other computer language with which you are familiar) and English, commenting on the understanding problem in each case, think about such things as...
According to a payroll register summary of Frederickson Company, the amount of employees gross pay in December was $850,000, of which $80,000 was not subject to FICA tax and $750,000 was not subject...
What do you think about adding slack to individual task estimates (sometimes called padding estimates)? What do you think about adding a project buffer for the entire project, as critical chain...
You operate a carwash with one machine. When you charge $10 per wash you expect to have 20,000 customers per year. For every 10c reduction in price you expect to add 250 customers per year. Your...
PLEASE SHOW ALL STEPS TO GET TO THE ANSWER. Stark Company, a 90% owned subsidiary of Parker, Inc., sold land to Parker on May 1, 2010, for $80,000. The land originally cost Stark $85,000. Stark...
Let x, y, z be (non-zero) vectors and suppose w = z. If z = 3x - 4y, then w = x+ y. Using the calculation above, mark the statements below that must be true. A. Span(w, z) = Span(w, x, z) B. Span(x,...
On April 1, Paine Co. began construction of a small building. Payments of $180,000 were made monthly for four months beginning on April 1. The building was completed and ready for occupancy on August...
Suppose that a firm offers a divisional manager a linear pay-for-performance contract based on the revenues of the division the manager leads. The manager's pay includes a fixed yearly salary F and a...
Presented below are a number of business transactions that occurred during the current year for Gonzales, Inc. Instructions In each of the situations, discuss the appropriateness of the journal...
3. Different positions of Vermiform appendix.
Define Image?
What is Dynamic Range?
Define Brightness?
What is Chromatic Adoption?
What enzyme cofactor is associated with transamination?
For the following arrangements, discuss whether they are 'in substance' lease transactions, and thus fall under the ambit of IAS 17.
Shetland Inc. had pretax financial income of $154,000 in 2010. Included in the computation of that amount is insurance expense of $4,000 which is not deductible for tax purposes. In addition,...
Clydesdale Corporation has a cumulative temporary difference related to depreciation of $580,000 at December 31, 2010. This difference will reverse as follows: 2011, $42,000; 2012, $244,000; and...
At December 31, 2010, Fell Corporation had a deferred tax liability of $680,000, resulting from future taxable amounts of $2,000,000 and an enacted tax rate of 34%. In May 2011, a new income tax act...
thumbs up if correct A stock paying no dividends is priced at $154. Over the next 3-months you expect the stock torpeither be up 10% or down 10%. The risk-free rate is 1% per annum compounded...
Question 17 2 pts Activities between affiliated entities, such as a company and its management, must be disclosed in the financial statements of a corporation as O significant relationships O segment...
Marchetti Company, a U.S.-based importer of wines and spirits, placed an order with a French supplier for 1,000 cases of wine at a price of 200 euros per case. The total purchase price is 200,000...

Explain why self-employed taxpayers generally pay double the amount of FICA taxes that regular wage earners do.

Question:

Step by Step Answer:

Selfemployed taxpayers are allowed to take a for AGI or abovet...View the full answer

Fundamentals Of Taxation 2015

Students also viewed these Cost Accounting questions