George receives wages from an employer in the amount of $120,000. George also had earnings from...
George receives wages from an employer in the amount of $120,000. George also had earnings from self-employment of $25,800. Determine the amount of self-employment earnings that are subject to the FICA and calculate the self-employment taxes that George is responsible for.
Homework Answers
The amount of self-employment earnings that are subject to the FICA and the self-employment taxes that George is responsible is calculated as follows:
| $ | |
|---|---|
| Social Security Tax ($25,800 * 6.2%) | 1,599.60 |
| Medicare Tax ($25,800 * 1.45%) | 374.10 |
| Total self-employment taxes | $1,973.70 |
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