Compute the income tax burden on the sole proprietorship

Assignment Help Operation Management

Reference no: EM131480862

During 2016, the social security tax rate was 6.2% capped at $118,500 of net earnings from self-employment; the medicare tax rate was 1.45% with no cap. An additional 0.9% of Medicare tax is assessed above $200,000 for single proprietors. Asole proprietor that is single and in the 39.6% income tax bracket earned $350,000 of net income from his sole proprietorship in 2016.

1) Compute the 2016 total Social Security & Medicare tax for the sole proprietor.

2) Compute the income tax burden on the sole proprietorship.

Reference no: EM131480862

Questions Cloud

What is your role in the budgeting process : When does the organization’s annual budget start and finish? What is your role in the budgeting process?

What is required to support a byod policy : What is required to support a BYOD policy? Defend your answer with a detailed evaluation using clear, insightful critical thinking.

Risk management of health status of health plan enrollees : broader Medical Risk Management of the health status of health plan enrollees?

Party interference in decisions made by physicians-patients : What was their overall attitude toward third-party interference in the decisions made by physicians and patients?

Compute the income tax burden on the sole proprietorship : Compute the 2016 total Social Security & Medicare tax for the sole proprietor. Compute the income tax burden on the sole proprietorship.

Regarding the importance of helping whole team of leaders : Identify one main point regarding the importance of helping a whole team of leaders. what do you anticipate as the long-term benefit

Wholesale company deals mostly in low cost commodity items : Your mid-sized wholesale company deals mostly in low cost commodity items. One particular product, dehydrated water, has a holding cost of only $1.36 per case.

Explain how the protection provided for commercial speech : Describe the right to free speech under the First Amendment and explain how the protection provided for "commercial speech"

Employment-at-will doctrine : In spite of the fact that employers could legally fire employees for virtually any reason under the Employment-At-Will doctrine (EAW),

User Account

All Pages