Use the 2016 FICA tax rates, shown below, to answer the following question. If a taxpayer is self-employed and earns $165,000, what are the taxpayer's FICA taxes? Matching Rates Paid by the Employer Employee's Rates 7.65% on first $118,500 of 7.65% on first $118,500 paid income in wages 1.45% of income in excess of $118,500 1.45% of wages paid in excess of $118,500 Self-Employed Rates 15.3% on first $118,500 of net profits 2.9% of net profits in excess of $118,500 The FICA taxes are (Type an integer or a decimal. Round to the nearest cent as needed.)
Use the 2016 FICA tax rates, shown below, to answer the following question. If a taxpayer is self-employed and earns $165,000, what are the taxpayer's FICA taxes? Matching Rates Paid by the Employer Employee's Rates 7.65% on first $118,500 of 7.65% on first $118,500 paid income in wages 1.45% of income in excess of $118,500 1.45% of wages paid in excess of $118,500 Self-Employed Rates 15.3% on first $118,500 of net profits 2.9% of net profits in excess of $118,500 The FICA taxes are (Type an integer or a decimal. Round to the nearest cent as needed.)
Chapter9: Payroll, Estimated Payments, And Retirement Plans
Section: Chapter Questions
Problem 16MCQ
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Use the 2016 FICA tax rates, shown below, to answer the following question.
If a taxpayer is self-employed
and earns $165,000, what are the taxpayer's FICA taxes?
Matching Rates Paid by the
Employer
Employee's Rates
7.65% on first $118,500 of 7.65% on first $118,500 paid
income
in wages
1.45% of income in excess 1.45% of wages paid in
of $118,500
excess of $118,500
Self-Employed Rates
15.3% on first $118,500 of net
profits
2.9% of net profits in excess
of $118,500
The FICA taxes are $
(Type an integer or a decimal. Round to the nearest cent as needed.)
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