Use the 2021 FICA tax rates, shown, to answer the following question. If a taxpayer is self-employed and earns $163,000, what are the taxpayer's FICA taxes? Employee's Rates Matching Rates Paid by the Employer 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
Use the 2021 FICA tax rates, shown, to answer the following question. If a taxpayer is self-employed and earns $163,000, what are the taxpayer's FICA taxes? Employee's Rates Matching Rates Paid by the Employer 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
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter9: Individuals As Taxpayers
Section: Chapter Questions
Problem 4CE
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Transcribed Image Text:Use the 2021 FICA tax rates, shown, to answer the following question.
If a taxpayer is self-employed and earns $163,000, 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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