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

George Parker was paid a salary of $74,700 during 20-- by Umberger Company. In addition, during the year, Parker started his own business as a public accountant and reported a net business income of $60,000 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 Umberger Company.

OASDI $___________

HI $______________

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

OASDI $__________

HI $_____________