Use the 2016 FICA tax rates, shown below, to answer the following question. If a taxpayer is not self-employed and earns $133,000, what are the taxpayer's FICA taxes? Matching Rates Paid by the Employer 7.65% on first $118,500 paid in wages Self-Employed Rates 15.3% on first $118,500 of net profits Employee's Rates 7.65% on first $118,500 of income 1.45% of income in excess of $118,500 1.45% of wages paid in excess of $118,500 2.9% of net profits in excess of $118,500 FICA taxes are $ (Type an integer or a decimal. Round to the nearest cent as needed.)
Use the 2016 FICA tax rates, shown below, to answer the following question. If a taxpayer is not self-employed and earns $133,000, what are the taxpayer's FICA taxes? Matching Rates Paid by the Employer 7.65% on first $118,500 paid in wages Self-Employed Rates 15.3% on first $118,500 of net profits Employee's Rates 7.65% on first $118,500 of income 1.45% of income in excess of $118,500 1.45% of wages paid in excess of $118,500 2.9% of net profits in excess of $118,500 FICA taxes are $ (Type an integer or a decimal. Round to the nearest cent as needed.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Use the 2016 FICA tax rates, shown below, to answer the following question.
If a taxpayer is not self-employed and earns $133,000, what are the taxpayer's FICA taxes?
Matching Rates Paid by
the Employer
7.65% on first $118,500 paid
in wages
Self-Employed Rates
15.3% on first $118,500 of net
profits
Employee's Rates
7.65% on first $118,500 of
income
1.45% of income in
excess of $118,500
1.45% of wages paid in
excess of $118,500
2.9% of net profits in excess
of $118,500
FICA taxes are $
(Type an integer or a decimal. Round to the nearest cent as needed.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc5e10270-f61b-42f1-901a-7c5a9e4f7c2f%2F3e15a97f-0732-4b6f-9282-044c15b30d4a%2F5tbherm.png&w=3840&q=75)
Transcribed Image Text:Use the 2016 FICA tax rates, shown below, to answer the following question.
If a taxpayer is not self-employed and earns $133,000, what are the taxpayer's FICA taxes?
Matching Rates Paid by
the Employer
7.65% on first $118,500 paid
in wages
Self-Employed Rates
15.3% on first $118,500 of net
profits
Employee's Rates
7.65% on first $118,500 of
income
1.45% of income in
excess of $118,500
1.45% of wages paid in
excess of $118,500
2.9% of net profits in excess
of $118,500
FICA taxes are $
(Type an integer or a decimal. Round to the nearest cent as needed.)
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