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Question
? /. T, -:!:-Tenne: ?1) ?- ,' D taxrateschedulea.jpg (91 1 × x" N chegg dtudy-Yahoo Searc ×?e Home | Chegg.com Tennessee Tech Homepage . ACCT-3180-OX Connect ? : c Secure! https://newconnect.mheducation.com/flow/connect.html Chapter 8 HW Help Save & Exit Submit Check my work 10 Kyle, a single taxpayer, worked as a free-lance software engineer for the first three months of 2017. During that time, he earnecd $90,000 of self-employment income. On April 1, 2017, Kyle took a job as a ful-time software engineer with one of his former clients, Hoogle Inc. From April through the end of the year, Kyle earned $198,000 in salary. 0.35 points What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year? (Round your intermediate calculations to the nearest whole dollar amount.) tax This is a numeric cell, so please enter numbers Print ?Prey 100124 Next > javascript::Explanation / Answer
Answer : $17115
Explanation:
The FICA (for Federal Insurance Contributions Act) tax (also known as Payroll Tax or Self-Employment Tax, depending on your employment status) is your contribution to Social Security and Medicare as a percentage of your salary
1. Calculation of tax of income from self employment:
Social Security: $10,306
Medicare: $ 2,410
Total: $12,717
Deductible Half: $ 6,358
Social Security % Paid 5.73
2. Calculation of tax on income from employment:
Social Security: $15,773
Medicare: $5,742
Total: $21,515
Employee's Half: $10,757
Thus , total = $6358 + $10757
=$17115
Rates and limits:
Social Security: 12.4% on your first $127,200 of wages
Medicare: 2.9% on all your wages
Total FICA: 15.3% maximum
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