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Use the information below to create an Income Statement for the Miura family, Rilas and Kentare have combined income of $140,000. Assume their average tax
Use the information below to create an Income Statement for the Miura family, Rilas and Kentare have combined income of $140,000. Assume their average tax rate inchading fodstate is 20%. Rika's income is $60,000 and Kentaro's is $80,000. Knowing their individual incomes will allow us to calculate their FICA taxes. (Use the info below to calculate the FICA laxes. Only calculate the employee portion) Topic 781 - Social Security and Medicare Willholding Rates Taxes under the Federal Insurance Contributions Act (FICA) are composed of the old-age, survivors, and disability Insurance laxes, also known as Social Security taxes, and the hospital insurance tax, also known as Medicare taxes. Different rates apply for these taxes. The current tax rate for Social Security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 145% for the employer and 1.45% for the employee, or 2.9% total. Refer to Publication 15. (Circutor E), Employer's Tax Guide, for more information or Publication 61. (Circular AJ, Agricultural Employer's Tax Guide, for agricultural employers. Only the Social Security tax has a wage base limil Tho wage base imit is the maximum wage that is subject to the tax for that yearFor earnings in 2016, this base is $132,900 They cach save $600 per month. Their mortgage payment is $3,833 per month (PITT), they lease two cars for a total of $6,000 per year and have college loans payments of $120 per month. Their utilities are roughly $150 a month and they estimate they spent about $210 a week on food. The premiums for their auto insurance totaled to $1600 for the year, They had some other expenses for 2019 they did not itemize that totaled to $9,000
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