In: Accounting
Eva received $71,000 in compensation payments from JAZZ Corp. during 2018. Eva incurred $15,000 in business expenses relating to her work for JAZZ Corp. JAZZ did not reimburse Eva for any of these expenses. Eva is single and she deducts a standard deduction of $12,000. Based on these facts answer the following questions: Use Tax Rate Schedule for reference.
a. Assume that Eva is considered to be an employee. What amount of FICA taxes is she required to pay for the year?
Amount of FICA Taxes |
a. Assume that Eva is considered to be an employee. What amount of FICA taxes is she required to pay for the year?
= $71,000 * 7.65%
= $5,431.5.
Explanation:
Eva salary is below the social security wage base limit for 2018. So, she pays FICA taxes of 7.65% on her $71,000.