1. What self-employment tax rate is applied to earnings that exceed $142,800 in a year and also do NOT exceed the additional Medicare tax threshold?Answer: A. 15.3% B. 12.4% C. 2.9% D. 1.45%2. What is the standard credit applied to the FUTA tax rate in non-credit reduction states?Answer: A. 0.6% B. 0.9% C. 5.4% D. 6%3. An employer in a non-credit reduction state would pay FUTA taxes of _____ for an employee whose year-to-date earnings prior to the current period are $7,200 and who earns $1,100 during the current period.Answer: A. $0 B. $6.60 C. $43.20 D. $49.80

Self-Employment Tax: Taxes for Social Security and Medicare are combined into a single payment…

Answered: What self-employment tax rate is…

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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1. What self-employment tax rate is applied to earnings that exceed $142,800 in a year and also do NOT exceed the additional Medicare tax threshold?

Answer:

15.3%

12.4%

2.9%

1.45%

2. What is the standard credit applied to the FUTA tax rate in non-credit reduction states?

Answer:

0.6%

0.9%

5.4%

3. An employer in a non-credit reduction state would pay FUTA taxes of _____ for an employee whose year-to-date earnings prior to the current period are $7,200 and who earns $1,100 during the current period.

Answer:

$6.60

$43.20

$49.80

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