Problem Information Use the following tax rates, ceiling and maximum taxes Employee and Employer OASDI 6 20 $137,700 $8,537 40 Employee and Employer HI 1 45 No limit No maximum Self employed OASDI 12 4 $137,700 $17,074 80 Self employed HI 2 9 No limit No maximum Employee HI Plus an additional 0 9 on wages over $200,000 Also applicable to self employed Rounding Rules Unless instructed otherwise compute hourly rate and overtime rates as follows Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one half to determine the overtime rate) If the third decimal place is 5 or more, round to the next higher cent If the third decimal place is less than 5, drop the third decimal place Also, use the minimum hourly wage of $7 25 in solving these problems and all that follow Ralston is the sole proprietor of Cut Curl During the year, his net earnings were $79,700 What are his self employment taxes (OASDI and HI) on these earnings Round your answer to the nearest cent $

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Problem Information Use the following tax rates, ceiling and maximum taxes: Employee and Employer OASDI: 6.20% $137,700 $8,537.40 Employee* and Employer HI: 1.45% No limit

Problem Information

Use the following tax rates, ceiling and maximum taxes:
Employee and Employer OASDI:	6.20%	$137,700	$8,537.40
Employee* and Employer HI:	1.45%	No limit	No maximum
Self-employed OASDI:	12.4%	$137,700	$17,074.80
Self-employed HI:	2.9%	No limit	No maximum

*Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed.

Rounding Rules: Unless instructed otherwise compute hourly rate and overtime rates as follows:

Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate).
If the third decimal place is 5 or more, round to the next higher cent.
If the third decimal place is less than 5, drop the third decimal place.

Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.

Ralston is the sole proprietor of Cut & Curl. During the year, his net earnings were $79,700. What are his self-employment taxes (OASDI and HI) on these earnings? Round your answer to the nearest cent.

$___________