Principles Of Taxation For Business And Investment Planning 2020 Edition
23rd Edition
ISBN: 9781259969546
Author: Sally Jones, Shelley C. Rhoades-Catanach, Sandra R Callaghan
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 10, Problem 13AP
Jane is a self-employed attorney. This year, her net profit exceeded $350,000, which put her in the 37 percent tax bracket. Early in the year, Jane hired Ben as a paralegal and paid him a $33,000 salary.
- a. Compute the employer payroll tax on Ben’s salary.
- b. In addition to the employer payroll tax, Jane paid $400
unemployment tax on Ben’s salary. The salary and tax expense reduced Jane’s net earnings from self-employment, thereby saving $962 in self-employment tax. Compute Jane’s after-tax cost of hiring Ben.
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Principles Of Taxation For Business And Investment Planning 2020 Edition
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