1-Harriet is single she has self-employment income of $80,000 and no other income.Which of the following is true?

Select one or more:

a.Harriet can deduct all ordinary and necessary business expenses related to her self-employment.

b.If Harriet were anemployeeshe could deduct all her employment related expenses.

c.If Harriet itemizes andhas deductible medical expenses,being an employee would be better because this would increase thedeductible amount of her medical expenses.

d.If Harrietpays medical insurance premiums she is better off being self-employed than an employee

e.Harrietwill have to pay more FICA taxes than if she were an employee.

2-Sarita is single and has salary of $250,000 and AGI of $250,000.Which of the following are true?

Select one:

a.Sarita's employer withholds 1.45% Medicare tax on salary of $200,000 of Sarita's salary and 2.35% on $50,000 of salary

b.Employer withholds .9% Additional medicare tax on $50,000 of Sarita's salary and also pays .9% on $50,000

c.Sarita's employer withholds 7.65% FICA taxes and also pays 7.65% FICA to the IRS .

d.The employer withholds 7.65% on her salary and also withholds Additional Medicare tax of .9% on her salary.

3-Cassandra is single and self employed.Herself-employment income is $300,000.Which of the following is true?.

Select one:

a.Cassandra pays self employment tax on $300,000 x 15.3% and Additional Medicare tax of .9% x $300,000.

b.Cassandrareceives a deduction FOR AGI. which is equal tothe sum of one half of thethe Social Security Tax, Medicare Tax and Additional Medicare Tax FOR

c.Cassandrapays Self-employment tax of(300,000 x .9235) x 15.3 %

d.Casandapays Additional Medicare Tax of $300,000 x .9235 x .9%

e.None of the other choices

4-Biden's has proposed which of the following changes to FICA taxes:

Select one:

a.All taxpayers will pay 7.65% tax on all their earned income without limit.

b.Taxpayers will pay 7.65% of FICA on their earned income but there will be a "doughnut hole" between $137,700 and $400,000 (a taxpayer would be liable for FICA taxes on earnings below $137,700 and earnings above $400,000.

c.All taxpayers who have earned incomewill pay 7.65% plus .9% the Additional Medicare Tax.

d.All individuals will pay 7.65% on all income from whatever source.

5- Frankenstein is single and is a sole proprietor.His net income from the business is $100,000.

Select one:

a.Frank pays self-employment tax of $15,300

b.Frank pays self employment tax of $7,650.

c.Frank pays self-employment taax of $14,130 and can deduct $7065 FOR AGI.

d.Frank pays self-employment tax of $14,130, and can deduct $14,130 FOR AGI.

6-Ursula is single and earns a salary of $80,000 from one employer and $60,000 from a second employer. Which of the following is true.More than one may be true.

Select one or more:

a.The employer where Ursula earns $60,000 would stop withholding on FICA once her combined income from the two employers reaches $137,700

b.Each employer withholds 7.65% of her salary since she earns less than $137,700. at each employer.

c.Urusula claims a refund of excess FICA taxes paidof $176 on her 1040.

d.Ursula can ask one employer to not withhold FICA taxes on her salary.

7-Tyler earns a salary of $150,000.He is single and his AGI is $180,000.Which of the following is true.More than one may apply.

Select one or more:

a.Employee withholds Medicare tax of 1.45% on $150,000 and employer pays Medicare tax of the same amount

b.Employer gets a business deduction for her share and employee gets a deduction FOR AGI of 1/2 of the Social Security Tax and Medicare Tax

c.Employer withholds FICA taxes of 7.65% x $150,000.Employer pays same amount to the IRS.

d.Employer withholds Social Security tax of $8,537 and employer pays the same amount to the IRS

e.Employee pays an additional tax of .9% on hissalary over $12,300 ($150,000 - 137,700)

8-Indira and Joehire Vivianas a care-taker for Indira's mother.Vivian works 10 hours per week in their house.Vivian works for 3 other employers.She sets her own schedule and brings her own supplies.They pay Vivan $20 per hour.Which of the following is true?

Select one or more:

a.Indira and Joemust pay FICA taxes and either withhold FICA taxes or pay Vivan's FICA taxes.

b.Indira and Joe must pay Federal unemployment Insurance and State Unemployment insurance and provide other benefits like workman's compensation for Vivian.

c.Vivian is an independent contractor and must pay self-employment tax and her own federal income taxes.

d.Vivian is an employee and they must withhold Federal income tax and FICA taxes from her salary.

9-Wilma is an employee and works for Harris.Wilma earns a salary of $230,000.Which of the following are deductible by Harris?

Select one:

a.Harris can deduct all FICA taxes withheld from Wilma's salaryand Harris's share of FICA taxes he pays.

b.Harris's share of FICA taxes he pays and all the Additional Medicare tax withheld or paid.

c.California taxes which were withheld from Wilma's slalary.

d.Haris's share of FICA taxes and Federal and State Unemployment taxes he paid to cover Wilma .