PSA Calculate SelfEmployment Tax
For each individual, calculate the selfemployment tax. Assume that each individual files tax returns under single status. Remember, the additional Medicare Tax threshold that applies to selemployment 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 $ 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.
: Annabelle Jefferson earns net selfemployment income of $ She does not work a second job.
SelfEmployment tax
Alexander Ryan earns net selfemployment income of $ He works a second job from which he receives FICA taxable earnings of $
SelfEmployment tax
Morgan Cruise earns net selfemployment income of $ She works a second job from which she receives FICA taxable earnings of $
SelfEmployment tax
