Self Employment Tax is generally 15.3 % consisting of a 12.4 component for social security and 2.9 % component for medicare (Hospital Insurance HI)).
Social security wage base
if tax payer recieves wages subject to FICA or
railroad retirement tax during the year the social security base is reduced depending on the amount of wages
threshold amount; for determining the additional medicare tax for self employment tax rate amount
Under ths: 15.3 12.4 + 2.9 % of the taxpayers self employment income upto the social security wage base
in effect for the year.
Seperate SE for each spouse
Schedual SE
Phoebe Gates has 510,000.00 Self employed individual
Receives expected $310,000.00 from Tips that counts as or not as wages
with an additional 3 billion of net this from purchases and is subject to benefits.
Typical excelling trades and far exceeding in many areas of all prime skills demanded in the net area and thereofre the Valuedate and pool fund she moving like nothing except goodness and still earns here take at the end of the years from its base
Payment amount depends primarily on policies sold by or credited to the individual
the gross income derived from any trade or business
an estate or trust undistributed net investment income is its net investment income
gross income derived from is about $ 1,500,000.00 yearly.
$ 810,000.00
810,000.00
$177,480.00
-2,142,520.00-
x15.3
$ 354,960.00
After: = $ 1,787,560.00
Self employment net earnings………………………$ 820,000.00
Less: 810,000 x 7.65%………………………………………..$ 61,965.00
Reduced self employment net earnings ……….$ 758,035.00
Tax rate on self employment income …………. x 15.3 %
Self Employment Tax ………………………………………..$ 115,979.35
5 x 40 hours = $ 200
x 8 = $ 1,600 x 3
= $ 249,600.00
24 employers around the clock makes roughly sixty employees weekly.
$ 210,000 a year.
Expected at $ 10,400.00
12,000,000
24,000 – 24,000 expenses costs
Current Liabilities
Current Liabilities
Dr. Wages Expense (for gross pay).
Cr. Wages Payable (or Accrued Payroll, for net pay)
Cr. Withholding Liabilities (various descriptions)
Dr. Payroll Tax Expense.
Cr. Payroll Taxes Payable (or Accrued Payroll Taxes).
The effect of this transaction on the financial statements is:
Balance sheet Income statement
Assets Liabilities + Owners’ equity ← Net income = Revenues – Expenses
+ Wages
Payable
+ Withholding
Liabilities
– Wages Expense ………………………………………………………………..XX XX