PSA 5 9 Calculate Self Employment Tax For each individual, calculate the self employment tax Assume that each individual files tax returns under single status Remember, the additional Medicare Tax threshold that applies to sel employment 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 $ 2 0 0 , 0 0 0 in a single year, regardless of filing status NOTE For simplicity, all calculations throughout this exercise, both intemediate and final, should be rounded to two decimal places at each calculation 1 Annabelle Jefferson earns net self employment income of $ 6 8 , 4 0 0 She does not work a second job Self Employment tax 2 Alexander Ryan earns net self employment income of $ 1 2 2 , 0 0 0 He works a second job from which he receives FICA taxable earnings of $ 7 3 , 9 0 0 Self Employment tax Morgan Cruise earns net self employment income of $ 2 2 6 , 7 0 0 She works a second job from which she receives FICA taxable earnings of $ 1 3 3 , 8 0 0 , 0 0 Self Employment tax

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PSA 5   9 Calculate Self   Employment Tax For each individual, calculate the self   employment tax  Assume that each individual files tax returns under single status  Remember, the additional Medicare Tax threshold that applies to sel   employment 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 $ 2 0 0 , 0 0 0 in a single year, regardless of filing status  NOTE  For simplicity, all calculations throughout this exercise, both intemediate and final, should be rounded to two decimal places at each calculation  1   Annabelle Jefferson earns net self   employment income of $ 6 8 , 4 0 0   She does not work a second job  Self   Employment tax   2   Alexander Ryan earns net self   employment income of $ 1 2 2 , 0 0 0   He works a second job from which he receives FICA taxable earnings of $ 7 3 , 9 0 0   Self   Employment tax   Morgan Cruise earns net self   employment income of $ 2 2 6 , 7 0 0   She works a second job from which she receives FICA taxable earnings of $ 1 3 3 , 8 0 0 , 0 0   Self   Employment tax

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PSA 5 - 9 Calculate Self - Employment Tax For each individual, calculate the self - employment tax. Assume that each individual files tax returns

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Financial Accounting International Financial Reporting Standards Global Edition

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