Graphic designers create visual concepts using computer software or by hand to communicate ideas that inspire, inform, and captivate consumers. They develop the overall layout and production design for various applications such as for advertisements, brochures, magazines, and corporate reports. SOURCE: United States. Department of Labor. "Graphic Designers." Occupational Outlook Handbook. 17 Dec. 2015. Web. 7 March 2016. Employee's Rates Matching Rates Paid by the Employer Self-Employed Rates 7.65% on first $118,500 of income 1.45% on income above $118,500 7.65% on first $118,500 paid in wages 1.45% on wages above $118,500 13.3% on first $118,500 of net earnings 2.9% on earnings above $118,500 1FICA taxes include Social Security and Medicare. The Social Security tax applies to the first $118,500 of income, while the Medicare tax applies to all income. Suppose a graphic designer earns $53,000 and is self-employed. How much will the designer have to pay in FICA taxes?
Graphic designers create visual concepts using computer software or by hand to communicate ideas that inspire, inform, and captivate consumers. They develop the overall layout and production design for various applications such as for advertisements, brochures, magazines, and corporate reports. SOURCE: United States. Department of Labor. "Graphic Designers." Occupational Outlook Handbook. 17 Dec. 2015. Web. 7 March 2016. Employee's Rates Matching Rates Paid by the Employer Self-Employed Rates 7.65% on first $118,500 of income 1.45% on income above $118,500 7.65% on first $118,500 paid in wages 1.45% on wages above $118,500 13.3% on first $118,500 of net earnings 2.9% on earnings above $118,500 1FICA taxes include Social Security and Medicare. The Social Security tax applies to the first $118,500 of income, while the Medicare tax applies to all income. Suppose a graphic designer earns $53,000 and is self-employed. How much will the designer have to pay in FICA taxes?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Graphic designers create visual concepts using computer software or by hand to communicate ideas that inspire, inform, and captivate consumers. They develop the overall layout and production design for various applications such as for advertisements, brochures, magazines, and corporate reports.
SOURCE: United States. Department of Labor. "Graphic Designers." Occupational Outlook Handbook. 17 Dec. 2015. Web. 7 March 2016.
| Employee's Rates | Matching Rates Paid by the Employer |
Self-Employed Rates |
|
|
|
| 1FICA taxes include Social Security and Medicare. The Social Security tax applies to the first $118,500 of income, while the Medicare tax applies to all income. |
Suppose a graphic designer earns $53,000 and is self-employed. How much will the designer have to pay in FICA taxes?
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