For each of the following individuals, calculate the applicable self-employment tax. Assume that each individual files tax returns under single status. Remember, the IRS instructsemployers to collect additional Medicare tax on all employee earnings more than $200,000 in a single year without regard to filing status.NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.1: Allison Wilson earns net self-employment income of $74,200. She does not work a second job.Self-Employment tax = $2: Martin Hughes earns net self-employment income of $157,100. He works a second job from which he receives FICA taxable earnings of $110,200.Self-Employment tax = $3: Elisa Grant earns net self-employment income of $198,000. She works a second job from which she receives FICA taxable earnings of $83,000.Self-Employment tax = $

Normally if a person is in employment somewhere, there is some tax which is deducted from the salary…

1: Allison Wilson earns net self-employment income of $74,200. She does not work a second job. Self-Employment tax = $ 2: Martin Hughes earns net self-employment income of $157,100. He works a second job from which he receives FICA taxable earnings of $110,200. Self-Employment tax = $ 3: Elisa Grant earns net self-employment income of $198,000. She works a second job from which she receives FICA taxable earnings of $83,000. Self-Employment tax = $

1: Allison Wilson earns net self-employment income of $74,200. She does not work a second job. Self-Employment tax = $ 2: Martin Hughes earns net self-employment income of $157,100. He works a second job from which he receives FICA taxable earnings of $110,200. Self-Employment tax = $ 3: Elisa Grant earns net self-employment income of $198,000. She works a second job from which she receives FICA taxable earnings of $83,000. Self-Employment tax = $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Aa.40.
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