Question

pboard Font PATES AVAILABLE Updates for Office are ready to be installed, but first we need to close some X for C B lame: D E F G H I Enter the appropriate numbers/formulas in the shaded (gray) cells. An asterisk (*) will appe o the night of an incorrect answer 3-8B Salary (a) The amount of FICA taxes that was withheld from his earnings paid by Umberger Company $ 74,700 OASDI H $ 4,631.40 $ 1,083.15 Business (b) Parkers's self-employment taxes on net business income from public accounting business. $60,000 H OASDI 5 1,740.00

the oasdi is not 7440. how do i calculate

Answer 1

Part B

OASDI = (137700-74700) * 12.4% = $7812.00

In year 2020, the defined Social Security wage limit is $137700 and from this $137700, the social security tax on $74700 salary is already withheld by the employer. Therefore, the OASDI for self-employment tax is calculated on the remaining amount.