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PSA 5-9 Calculate Self-Employment Tax For each individual, calculate the self-employment tax. Assume...

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Accounting

PSA 5-9 Calculate Self-Employment Tax
For each individual, calculate the self-employment tax. Assume that each individual files tax returns under single status. Remember, the additional Medicare Tax threshold that applies to sel-employment income is based on the employee's filing status, but to simplify the process for employers, the IRS requires that Additional Medicare Tax be withheld from all employees who earn more than $200,000 in a single year, regardless of filing status.
NOTE: For simplicity, all calculations throughout this exercise, both intemediate and final, should be rounded to two decimal places at each calculation.
1: Annabelle Jefferson earns net self-employment income of $68,400. She does not work a second job.
Self-Employment tax =
2. Alexander Ryan earns net self-employment income of $122,000. He works a second job from which he receives FICA taxable earnings of $73,900.
Self-Employment tax =
Morgan Cruise earns net self-employment income of $226,700. She works a second job from which she receives FICA taxable earnings of $133,800,00.
Self-Employment tax
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