Instruction 3-1 Complete Problems 1 and 2 by recording your answers in the...

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Accounting

Instruction 3-1
Complete Problems 1 and 2 by recording your answers in the spaces provided. Use the following tax rates and taxable wage
bases: Employees' and Employer's OASDI-6.2% both on $160,200; 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 in these problems.
Refer to Instruction 3-1. Karlie Hastings is a writer (employee) for the Santa Fe Gazette and has an annual salary of
$64,100. This year, she also realized net self-employment earnings of $105,000 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
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