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Use the 2021 FICA tax If a taxpayer is self-em Employee's Rates 7.65% on first $142,80 income 1.45% of income in ex of $142,800

Use the 2021 FICA tax If a taxpayer is self-em Employee's Rates 7.65% on first $142,80 income 1.45% of income in ex of $142,800

Essentials Of Investments
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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K Use the 2021 FICA tax rates, shown, to answer the following question. If a taxpayer is self-employed and earns $156,000, what are the taxpayer's FICA taxes? Matching Rates Paid by the Employer Employee's Rates 7.65% on first $142,800 of 7.65% on first $142,800 paid income in wages 1.45% of income in excess of $142,800 1.45% of wages paid in excess of $142,800 The FICA taxes are $ (Round to the nearest cent as needed.) Self-Employed Rates 15.3% on first $142,800 of net profits 2.9% of net profits in excess of $142,800
Transcribed Image Text:K Use the 2021 FICA tax rates, shown, to answer the following question. If a taxpayer is self-employed and earns $156,000, what are the taxpayer's FICA taxes? Matching Rates Paid by the Employer Employee's Rates 7.65% on first $142,800 of 7.65% on first $142,800 paid income in wages 1.45% of income in excess of $142,800 1.45% of wages paid in excess of $142,800 The FICA taxes are $ (Round to the nearest cent as needed.) Self-Employed Rates 15.3% on first $142,800 of net profits 2.9% of net profits in excess of $142,800
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