Use the information below to create an Income Statement for the Miura family. Rika and Kentaro have combined income of $140,000. Assume their average tax rate including fed/state is 20%. Rika’s income is $60,000 and Kentaro’s is $80,000. Knowing their individual incomes will allow us to calculate their FICA taxes. (Use the info below to calculate the FICA taxes. Only calculate the employee portion.) Topic 751 - Social Security and Medicare Withholding Rates Taxes under the Federal Insurance Contributions Act (FICA) are composed of the old-age, survivors, and disability insurance taxes, also known as Social Security taxes, and the hospital insurance tax, also known as Medicare taxes. Different rates apply for these taxes. The current tax rate for Social Security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total. Refer to Publication 15, (Circular E), Employer's Tax Guide, for more information; or Publication 51, (Circular A), Agricultural Employer’s Tax Guide, for agricultural employers. Only the Social Security tax has a wage base limit. The wage base limit is the maximum wage that is subject to the tax for that year. For earnings in 2018, this base is $132,900 They each save $600 per month. Their mortgage payment is $3,833 per month (PITI), they lease two cars for a total of $6,000 per year and have college loans payments of $120 per month. Their utilities are roughly $150 a month and they estimate they spent about $210 a week on food. The premiums for their auto insurance totaled to $1600 for the year. They had some other expenses for 2019 they did not itemize that totaled to $9,000.
Use the information below to create an Income Statement for the Miura family.
Rika and Kentaro have combined income of $140,000. Assume their average tax rate including fed/state is 20%. Rika’s income is $60,000 and Kentaro’s is $80,000. Knowing their individual incomes will allow us to calculate their FICA taxes. (Use the info below to calculate the FICA taxes. Only calculate the employee portion.)
Topic 751 - Social Security and Medicare Withholding Rates
Taxes under the Federal Insurance Contributions Act (FICA) are composed of the old-age, survivors, and disability insurance taxes, also known as Social Security taxes, and the hospital insurance tax, also known as Medicare taxes. Different rates apply for these taxes.
The current tax rate for Social Security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total. Refer to Publication 15, (Circular E), Employer's Tax Guide, for more information; or Publication 51, (Circular A), Agricultural Employer’s Tax Guide, for agricultural employers.
Only the Social Security tax has a wage base limit. The wage base limit is the maximum wage that is subject to the tax for that year. For earnings in 2018, this base is $132,900
They each save $600 per month. Their mortgage payment is $3,833 per month (PITI), they lease two cars for a total of $6,000 per year and have college loans payments of $120 per month.
Their utilities are roughly $150 a month and they estimate they spent about $210 a week on food. The premiums for their auto insurance totaled to $1600 for the year.
They had some other expenses for 2019 they did not itemize that totaled to $9,000.
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