PSb 5-9 Calculate Self-Employment TaxFor 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.NO TE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 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 = $41,502.603: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 = $43,722.00

Taxes are forced contributions imposed by a agency on individuals or corporations, whether…

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 = $__ 41,502.60 × 3: Elisa Grant earns net self-employment income of $198,000. She works a second job from which she receives FICA taxable earnings of s83,000. Self-Employment tax = $ 43,722.00

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 = $__ 41,502.60 × 3: Elisa Grant earns net self-employment income of $198,000. She works a second job from which she receives FICA taxable earnings of s83,000. Self-Employment tax = $ 43,722.00

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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Kevin owns a small business with two employees. For one payroll period the total withholding tax for all employees was 1,536. The total employees Social security tax was $168 and the total employers social security tax was $251. The total employees Medicare tax was $110 How much John deposit as the employer's share of social security tax and Medicare tax? What is the total tax that must be deposited?
PSb 5-5 Calculate FUTA and SUTA Tax For each of the following independent circumstances calculate both the FUTA and SUTA tax owed by the employer: NO TE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation. 1: An employer in Delaware City, Delaware, employs two individuals, whose taxable earnings to date (prior to the current pay period) are $6,100 and $8,800. During the current pay period, these employees earn $1,450 and $2,000, respectively. The applicable SUTA tax rate is 2.1%, and the Delaware SUTA threshold is $16,500. FUTA tax = $ SUTA tax = $ 2: An employer in Bridgeport, Connecticut, employs three individuals, whose taxable earnings to date (prior to the current pay period) are $5,500, $12,900, and $14,200. During the current pay period, these employees earn $2,200, $1,950, and $2,400, respectively. The applicable SUTA tax rate is 4.9%, and the Connecticut SUTA threshold is $15,000.…
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