Exercise 13-31 (b) (LO. 5) Cheng is an employee of KaTuk Corporation. He also has his own business working as a caterer. For 2020, Cheng's wages from KaTuk were $198,000. His self-employment income was $34,000. If required, round any computations to two decimal places. Round final answers to the nearest dollar. a. Compute the total payroll, self-employment, and additional Medicare taxes for Cheng for 2020. 12,682 Feedback Check My Work Payroll (employment) taxes can be a significant cost for a business and its owners. Such costs can be classified into two categories: (1) FICA taxes (Social Security and Medicare) and (2) Self-employment tax. b. Assume the same facts except that Cheng's 2020 self-employment activities resulted in a loss of $9,000. Compute the total payroll, self-employment, and additional Medicare taxes for Cheng for 2020. Feedback Check My Work Incorrect C. Compute Cheng's NIIT for 2020 using wages of $198,000, self-employment income of $34,000, and NII of $6,000. 228