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
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
Related questions
Question
Subject:
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education