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 RatesMatching Rates Paid bythe EmployerSelf-Employed Rates7.65% on first $118,500 of income1.45% on income above $118,5007.65% on first $118,500 paid in wages1.45% on wages above $118,50013.3% on first $118,500 of net earnings2.9% on earnings above $118,5001FICA 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 $69,000 and is self-employed. How much will the designer have to pay in FICA taxes?

Federal Insurance Contributions Act [FICA] is the tax deduction in US's federal payroll system from…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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
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 $69,000 and is self-employed. How much will the designer have to pay in FICA taxes?

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