Example 3-5 Taylor Talbot receives wages amounting to $116,600. Their net earnings from self-employment amount to $32,800. Talbot must count $30,400 of their earnings in determining taxable self-employment income for OASDI taxes. OASDI Taxable Wage Base Wages Received = OASDI Taxable Self-Employment Income $147,000 OASDI Ralph Henwood was paid a salary of $80,400 during 20-- by Odesto Company. In addition, during the year Henwood started his own business as a public accountant and reported a net business income of $71,000 on his income tax return for 20--. Compute the following: a. The amount of FICA taxes that was withheld from his earnings during 20-- by Odesto Company. 4,984.80 ✔ 1,165.80 ✔ HI $116,600 OASDI $30,400 b. Henwood's self-employment taxes on the income derived from the public accounting business for 20--. 9,386.80 X 1,029.50 X HI
Example 3-5 Taylor Talbot receives wages amounting to $116,600. Their net earnings from self-employment amount to $32,800. Talbot must count $30,400 of their earnings in determining taxable self-employment income for OASDI taxes. OASDI Taxable Wage Base Wages Received = OASDI Taxable Self-Employment Income $147,000 OASDI Ralph Henwood was paid a salary of $80,400 during 20-- by Odesto Company. In addition, during the year Henwood started his own business as a public accountant and reported a net business income of $71,000 on his income tax return for 20--. Compute the following: a. The amount of FICA taxes that was withheld from his earnings during 20-- by Odesto Company. 4,984.80 ✔ 1,165.80 ✔ HI $116,600 OASDI $30,400 b. Henwood's self-employment taxes on the income derived from the public accounting business for 20--. 9,386.80 X 1,029.50 X HI
Chapter13: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 32CE
Related questions
Question
Gg.15.
Transcribed Image Text:Example 3-5
Taylor Talbot receives wages amounting to $116,600. Their net earnings from self-employment amount to $32,800. Talbot must count $30,400 of
their earnings in determining taxable self-employment income for OASDI taxes.
OASDI Taxable Wage Base
Wages Received =
OASDI Taxable Self-Employment Income
$147,000
HI
Ralph Henwood was paid a salary of $80,400 during 20-- by Odesto Company. In addition, during the year Henwood started his own business as a
public accountant and reported a net business income of $71,000 on his income tax return for 20--. Compute the following:
a. The amount of FICA taxes that was withheld from his earnings during 20-- by Odesto Company.
OASDI
4,984.80 ✔
1,165.80 ✓
OASDI
$116,600
HI
=
b. Henwood's self-employment taxes on the income derived from the public accounting business for 20--.
9,386.80 X
1,029.50 X
$
$30,400
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 2 steps
Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
PFIN (with PFIN Online, 1 term (6 months) Printed…
Finance
ISBN:
9781337117005
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning