Your Client Logan Lawrence is self employed. He owns and operates Logan’s Landscaping.

He has selfemployment income of $100,000 in 2020. Write a detailed letter to Logan Explaining

Self Employment tax. Include the following points in your letter:

● A description of Social Security tax

● A description of medicare tax.

● An explanation of the wage cap for social security

● A review of the rates for 2020

● An explanation of the employer and employee portion of self employment tax.

● A calculation of Logan’sself employment tax liability for 2020

● The deductibility of the employer portion of self employment tax

Your letter should be in good business form.