In: Accounting
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 $
a | ||
OASDI taxable self-employment earnings | 78200 | =127200-49000 |
b | ||
HI taxable self-employment earnings | 85000 | |
c | ||
OASDI self-employment tax | 9696.80 | =78200*6.2%*2 |
d | ||
HI self-employment tax | 2465.00 | =85000*1.45%*2 |