Example 3-5 Beorge Talbot receives wages amounting to $116,600. His net earnings from self-employment amount to $28,600. Talbot must count $26,200 of his earnings in determining taxable self-employment income for OASDI taxes. OASDI Taxable Wage Base $142,800 Wages Received $116,600 OASDI Taxable Self-Employment Income $26,200 Ralph Henwood was paid a salary of $64,600 during 20- by Odesto Company. In addition, during the year Henwood started his own business as a public accountant and reported net business income of $80,000 on his income tax return for 20-. Compute the following: a. The amount of FICA taxes that was withheld from his earnings during 20- by Odesto Company. OASDI HI 4,005.20 936.70 b. Henwood's self-employment taxes on the income derived from the public accounting business for 20-- OASDI HI 7,762.40 X 2,030 X Feedback Check My Work a. Multiply earnings by correct OASDI and HI rate. b. Multiply self-employment income, by OASDI and H1 rates for self-employed individual. (Note: consider the OASDI ceiling.) Check My Work Previous Next