If you are able to answer the last two can I please see a breakdown of the equat

Question

If you are able to answer the last two can I please see a breakdown of the equation please

PSa 5-9 Calculate Self-Employment Tax For each of the fulowing individuals, calculate the applicable sell employment tax Pssume that each indivickal les tax rehures unddar Maried Flng Jolnty stab NOTE: For simplicity, all cakculations throughout this exerdise, both intermediate and fnal, shoald be rounded to two decimal places st each caledaton 1 Annabelu Jethnson earns net saf-employment income of S49200. She des nt work second Sell-Employment tax152760 2 Alexander Ryan eams nat selt-omployment ncome of 5117,800 He works a second job from which he receives FICA taxable eamings of $44.800 Salf-Employment tax 2784220x 3 Morgan Cruise eams net self-employment income of $222 900 She works a second joh from which she receives FICA taxable earmings of $101 600 e pet21159x PREVIOUS NEXT Copyrigt 2017 Labyrinth Learning-Al Rights Resarved

Explanation / Answer

Self employment tax will only be received on the income from self-employment and not Job.

The self employment tax structure for 2017 is:

2. Net self employemnt income = $117800

Self-employment tax = $117800 x 15.3% = $18023

3. Net self employemnt income = $222900

Self-employment tax = ($127200 x 15.3%) + [($222900 - $127200) x 2.9%] = $22237

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