1.

Determine the maximum amount that Hector can contribute to the profit-sharing plan on his behalf in 2022. Hector celebrated his 52 birthday on April 25, 2022. He was advised to structure his company as a sole proprietorship and to sponsor a profit-sharing plan. His company is projecting a net income of 265,000 and will pay 23,320.00 in self-employment taxes.

2.

Determine how much self-employment taxes Maggie will owe in 2022. Maggie is a hairstylist and was advised by non CFP to structured her practice as a sole proprietorship. She earned 125,000 in self-employment income.