In 2001, Rodney Hampton earned $75,200 as a self-employed worker. He also earned $41,350 as an employee. How much FICA tax did he pay for both earnings? Note:Self-employed tax rate is 15.3% and the employee tax rate is 7.65%.$14,668.88$14,577.25$14,324.09$14,225.50None of these choices are correct.

Respuesta :

Step 1: Rodney Hampton earned $75,200 as a self-employed worker

% tax rate for self employed = 15.3%

[tex]\begin{gathered} =15.3\text{ \% of \$75200} \\ =\frac{15.3}{100}\text{ x \$75200} \\ =11505.6 \\ =\text{ \$11505.6} \end{gathered}[/tex]

Step 2: Rodney Hampton earned $41,350 as a employee worker

%tax rate for employee = 7.65%

[tex]\begin{gathered} =\text{ 7.65\% of \$41350} \\ =\text{ }\frac{7.65}{100}\text{ x \$41350} \\ =\text{ 3163.3} \\ =\text{ \$3163.3} \end{gathered}[/tex]

Step 3: FICA tax paid for both earnings = $11505.6 + $3163.3

= $14668.875

=$14668.88

Hence FICA tax paid for both earnings = $14668.88