Use the following tax rates and taxable wage bases: Employees' and Employer's OASDI-6.2% both on $128,400; HI-1.45% for employees and employers on the total wages paid. Employees' Supplemental HI of 0.9 percent on wages in excess of $200,000 was not applicable. PROBLEM. Karlie Hastings is a writer (employee) for the Santa Fe Gazette and has an annual salary of $49,000. This year, she also realized net self-employment earnings of $85,000 from a book she wrote. What portion of her self-employment earnings is subject to the two parts of the social security tax? (a) OASDI taxable self-employment earnings __________ (b) HI taxable self-employment earnings __________ (c) OASDI self-employment tax __________ (d) HI self-employment tax __________
Use the following tax rates and taxable wage bases: Employees' and Employer's OASDI-6.2% both on $128,400; HI-1.45% for employees and employers on the total wages paid. Employees' Supplemental HI of 0.9 percent on wages in excess of $200,000 was not applicable. PROBLEM. Karlie Hastings is a writer (employee) for the Santa Fe Gazette and has an annual salary of $49,000. This year, she also realized net self-employment earnings of $85,000 from a book she wrote. What portion of her self-employment earnings is subject to the two parts of the social security tax? (a) OASDI taxable self-employment earnings __________ (b) HI taxable self-employment earnings __________ (c) OASDI self-employment tax __________ (d) HI self-employment tax __________
Chapter1: Federal Income Taxation—an Overview
Section: Chapter Questions
Problem 73TA
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Use the following tax rates and taxable wage bases: Employees' and Employer's OASDI-6.2% both on $128,400; HI-1.45% for employees and employers on the total wages paid. Employees' Supplemental HI of 0.9 percent on wages in excess of $200,000 was not applicable.
PROBLEM. Karlie Hastings is a writer (employee) for the Santa Fe Gazette and has an annual salary of $49,000. This year, she also realized net self-employment earnings of $85,000 from a book she wrote. What portion of her self-employment earnings is subject to the two parts of the social security tax?
| (a) OASDI taxable self-employment earnings |
__________ |
| (b) HI taxable self-employment earnings |
__________ |
| (c) OASDI self-employment tax |
__________ |
| (d) HI self-employment tax |
__________ |
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