Eva received $60,000 in compensation payments from JAZZ Corp. during 2016. Eva incurred $5,000 in business expenses relating to her work for JAZZ Corp. JAZZ did not reimburse Eva for any of these expenses. Eva is single and she deducts a standard deduction of $6,300 and a personal exemption of $4,050. Based on these facts answer the following questions: Use Tax Rate Schedule for reference

a. Assume that Eva is considered to be an employee. What amount of FICA taxes is she required to pay for the year?

b. Assume that Eva is considered to be an employee. What is her regular income tax liability for the year?

c. Assume that Eva is considered to be a self-employed contractor. What is her self-employment tax liability for the year?

d. Assume that Eva is considered to be a self-employed contractor. What is her regular tax liability for the year?

2016 Federal Tax Rate Schedule Schedule X-Single Schedule Z-Head of Household If taxable income is over But not over $ 9,275 If taxable income is over. But not The tax is: over. The tax is: 10% of taxable income $92750 plus 15% of the excess over $9,275 $5,183.75 plus 25% of the excess over $37650 $18,558.75 plus 28% of the excess over $91,150 $46,278.75 plus 33% of the excess over $190,150 $119,934.75 plus 35% of the excess over $413,350 $120,529.75 plus 39.6% of the excess over $415,050 10% of taxable income $1,325.00 plus 15% of the excess over $13,250 $6,89750 plus 25% of the excess over $50,400 $26,835.00 plus 28% of the excess over $130,150 $49,41700 plus 33% of the excess over $210,800 $ 116,258.50 plus 35% of the excess over $413,350 $125,936.00 plus 39.6% of the excess over $441,000 0 0 $ 13,250 $ 50,400 $130,150 $210,800 $413,350 $441,000 $ $ 13,250 $ 50,400 $130,150 $210,800 $413,350 $441,000 37650 9,275 $. 37,650 $ 91,150 $190,150 $413,350 $415,050 $ 91,150 $190,150 $413,350 $415,050 Schedule Y-1-Married Filing Jointly of Qualifying Widow(er) Schedule Y-2-Married Filing Separately If taxable income is over: If taxable income is over: But not over. $ 9,275 $ 37650 The tax is: But not over $. 18,550 $ 75,300 The tax is: 10% of taxable income $92750 plus 15% of the excess over $9,275 $5,183.75 plus 25% of the excess over $37,650 $14,758.75 plus 28% of the excess over $75,950 $25,895.75 plus 33% of the excess over $115,725 $55,909.25 plus 35% of the excess over $206,675 $65,289.25 plus 39.6% of the excess over $233,475 0 $ 10% of taxable income $1,855.00 plus 15% of the excess over $18,550 $ 10,367 50 plus 25% of the excess over $75,300 $29,517 50 plus 28% of the excess over $151,900 $51,791.50 plus 33% of the excess over $231,450 $111,818.50 plus 35% of the excess over $413,350 $130,578.50 plus 39.6% of the excess over $466,950 9,275 $ 37,650 $75,950 $115,725 $206,675 $233,475 0 $ 18,550 $ 75,300 $151,900 $231,450 $413,350 $466,950 $ 151,900 $231,450 $413,350 $466,950 $ 75,950 $115,725 $206,675 $233,475