Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the 2 0 2 1 FICA tax rates, shown, to answer the following question. If a taxpayer is self - employed and earns $

Use the 2021 FICA tax rates, shown, to answer the following question.
If a taxpayer is self-employed and earns $156,000, what are the taxpayer's FICA taxes?
Employee's Rates
7.65% on first $142,800 of income
1.45% of income in excess of $142,800
Matching Rates Paid by the Employer
7.65% on first $142,800 paid in wages
1.45% of wages paid in excess of $142,800
Self-Employed Rates
15.3% on first $142,800 of net profits
2.9% of net profits, in excess of $142,800
The FICA taxes are $
(Round to the nearest cent as needed.)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing and Assurance Services

Authors: Timothy Louwers, Allen Blay, David Sinason, Jerry Strawser, Jay Thibodeau

7th edition

978-1259573286, 1259573281, 978-1260152166

More Books

Students also viewed these Accounting questions