Example 3-5 Taylor Talbot receives wages amounting to $116,600. Their net earnings from self-employment amount to $32,800. Talbot must count $30,400 of their earnings in determining taxable self-employment income for OASDI taxes. OASDI Taxable Wage Base Wages Received = OASDI Taxable Self-Employment Income $147,000 OASDI Ralph Henwood was paid a salary of $80,400 during 20-- by Odesto Company. In addition, during the year Henwood started his own business as a public accountant and reported a net business income of $71,000 on his income tax return for 20--. Compute the following: a. The amount of FICA taxes that was withheld from his earnings during 20-- by Odesto Company. 4,984.80 ✔ 1,165.80 ✔ HI $116,600 OASDI $30,400 b. Henwood's self-employment taxes on the income derived from the public accounting business for 20--. 9,386.80 X 1,029.50 X HI
Example 3-5 Taylor Talbot receives wages amounting to $116,600. Their net earnings from self-employment amount to $32,800. Talbot must count $30,400 of their earnings in determining taxable self-employment income for OASDI taxes. OASDI Taxable Wage Base Wages Received = OASDI Taxable Self-Employment Income $147,000 OASDI Ralph Henwood was paid a salary of $80,400 during 20-- by Odesto Company. In addition, during the year Henwood started his own business as a public accountant and reported a net business income of $71,000 on his income tax return for 20--. Compute the following: a. The amount of FICA taxes that was withheld from his earnings during 20-- by Odesto Company. 4,984.80 ✔ 1,165.80 ✔ HI $116,600 OASDI $30,400 b. Henwood's self-employment taxes on the income derived from the public accounting business for 20--. 9,386.80 X 1,029.50 X HI
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Gg.15.
Transcribed Image Text:Example 3-5
Taylor Talbot receives wages amounting to $116,600. Their net earnings from self-employment amount to $32,800. Talbot must count $30,400 of
their earnings in determining taxable self-employment income for OASDI taxes.
OASDI Taxable Wage Base
Wages Received =
OASDI Taxable Self-Employment Income
$147,000
HI
Ralph Henwood was paid a salary of $80,400 during 20-- by Odesto Company. In addition, during the year Henwood started his own business as a
public accountant and reported a net business income of $71,000 on his income tax return for 20--. Compute the following:
a. The amount of FICA taxes that was withheld from his earnings during 20-- by Odesto Company.
OASDI
4,984.80 ✔
1,165.80 ✓
OASDI
$116,600
HI
=
b. Henwood's self-employment taxes on the income derived from the public accounting business for 20--.
9,386.80 X
1,029.50 X
$
$30,400
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