Use the following tax rates and taxable wage bases: Employees' and Employer's OASDI—6.2% both on $127,200;...

Use the following tax rates and taxable wage bases: Employees' and Employer's OASDI—6.2% both on $127,200; HI—1.45% for employees and employers on the total wages paid. Employees' Supplemental HI of 0.9% on wages in excess of $200,000 was not applicable. 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 $

Solutions

Expert Solution

a
OASDI taxable self-employment earnings	78200	=127200-49000

b
HI taxable self-employment earnings	85000

c
OASDI self-employment tax	9696.80	=782006.2%2

d
HI self-employment tax	2465.00	=850001.45%2

ekkarill92 answered 2 years ago

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