Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. problem information use the following tax rates, c

Problem Information Use the following tax rates, ceiling and maximum taxes Employee and Employer OASDI:...

90.2K

Verified Solution

Question

Accounting

image
Problem Information Use the following tax rates, ceiling and maximum taxes Employee and Employer OASDI: 6.20% $132,900 $8,239.80 Employee and Employer HI: 1.45% No limit No maximum Self-employed OASDI: 12.4% $132,900 $16,479.60 Self-employed HE: 2.9% No limit No maximum Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed. Rounding Rules: unless instructed otherwise compute hourly rate and overtime rates as follows: 1. Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate). 2. If the third decimal place is 5 or more, round to the next higher cent. 3. If the third decimal place is less than 5, drop the third decimal place. Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow. Ralston is the sole proprietor of Cut & Curl. During the year, his net earnings were $79,700. What are his self-employment taxes (OASDI and Ht) on these earnings? Round your answer to the nearest cent

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students