Example 3-5

George Talbot receives wages amounting to $102,200. 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.

FICA Taxable Wage Base		Wages Received	=	Taxable SelfEmployment Income
$128,400		$102,200	=	$26,200

Ralph Henwood was paid a salary of $78,600 during 20-- by Odesto Company. In addition, during the year Henwood started his own business as a public accountant and reported a net business income of $67,000 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	$

b. Henwood's self-employment taxes on the income derived from the public accounting business for 20--.

OASDI	$
HI	$