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Use the 2016 FICA tax rates, shown below, to answer the following question. If a taxpayer is self-employed and earns $167,000, what are the taxpayer's FICA taxes? Matching Rates Paid by the Employer Employee's Rates 7.65% on first $118,500 of 7.65% on first $118,500 paid 15.3% on first $118,500 of net income Self-Employed Rates in wages profits 1.45% of income in excess 1.45% of wages paid in of $118,500 2.9% of net profits in excess of $118,500 excess of $118,500

Use the 2016 FICA tax rates, shown below, to answer the following question. If a taxpayer is self-employed and earns $167,000, what are the taxpayer's FICA taxes? Matching Rates Paid by the Employer Employee's Rates 7.65% on first $118,500 of 7.65% on first $118,500 paid 15.3% on first $118,500 of net income Self-Employed Rates in wages profits 1.45% of income in excess 1.45% of wages paid in of $118,500 2.9% of net profits in excess of $118,500 excess of $118,500

FINANCIAL ACCOUNTING
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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Use the 2016 FICA tax rates, shown below, to answer the following question. If a taxpayer is self-employed and earns $167,000, what are the taxpayer's FICA taxes? Matching Rates Paid by the Employer Employee's Rates Self-Employed Rates 7.65% on first $118,500 of 7.65% on first $118,500 paid in wages 15.3% on first $118,500 of net profits income 1.45% of income in excess 1.45% of wages paid in of $118,500 2.9% of net profits in excess of $118,500 excess of $118,500 ..... The FICA taxes are S (Type an integer or a decimal. Round to the nearest cent as needed.)
Transcribed Image Text:Use the 2016 FICA tax rates, shown below, to answer the following question. If a taxpayer is self-employed and earns $167,000, what are the taxpayer's FICA taxes? Matching Rates Paid by the Employer Employee's Rates Self-Employed Rates 7.65% on first $118,500 of 7.65% on first $118,500 paid in wages 15.3% on first $118,500 of net profits income 1.45% of income in excess 1.45% of wages paid in of $118,500 2.9% of net profits in excess of $118,500 excess of $118,500 ..... The FICA taxes are S (Type an integer or a decimal. Round to the nearest cent as needed.)
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