payroll accounting PSa 5-9

PSa 5-9 Calculate Self-Employment Tax For each of the following individuals, calculate the applicable self-employment tax. Assume that each individual files tax returns under single status. Remember, the additional Medicare tax threshold that applies to selfemployment income is based on the employee's filing status, but to simplify the process for employers, the IRS requires that additional Medicare tax be withheld from all employees who earn more than $200,000 in a single year, regardless of filing status. 1. Annabelle Jefferson earns net self-employment income of $43,500. She does not work a second job. 2. Alexander Ryan earns net self-employment income of $120,100. He works a second job from which he receives FICA taxable earnings of $58,400. 3. Morgan Cruise earns net self-employment income of $226,100. She works a second job from which she receives FICA taxable earnings of $118,100