Ask Question
BusinessBusiness
9 June, 14:20

John is the sole proprietor of a furniture manufacturing business. His 18 year-old daughter Jane is an employee of the business and works alongside John in making the furniture. Jane earns $40.00 per hour. She works 40 hours per pay period. How much in FICA tax (7.65%) is withheld from Jane's paycheck per pay period? A. $61.20.

B. None of the other choices are correct.

C. $0.00

D. $24.80

E. $30.60

+5
Answers (1)
  1. 9 June, 14:23
    0
    Correct option is (B)

    Explanation:

    As per IRS, if a child works in his / her parent's company, be it sole proprietorship or partnership firm (if all partners are the child's parents), he / she is not liable to pay FUTA for employing child below 21 years old. FICA taxes need to be paid if the child is above 18 years of age or above.

    In this case, Jane is 18 years old and is working in her father's firm. She is not required to pay FUTA taxes, but 7.65% of her wages are withheld from her wages for FICA taxes as she is 18 years old.

    Jane's income per period = $40 * 40 hours = $1,600

    Amount withheld for FICA taxes = 0.0765 * 1,600

    = $122.40
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “John is the sole proprietor of a furniture manufacturing business. His 18 year-old daughter Jane is an employee of the business and works ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Louis owns three pieces of land with an adjusted basis as follows: parcel A, $75,000; parcel B, $125,000; and parcel C, $175,000.
Answers (1)
What's gross national product?
Answers (1)
A few hundred U. S. sugar makers lobby the U. S. government each year to make sure that the government taxes imported sugar at a high rate. They do so because the policy drives up the domestic price of sugar and increases their profits.
Answers (1)
Which question is most relevant to a court when determining whether particular type of speech can be limited? A. Does the speech pose a threat to the public inter O B. Does the speech deal with issues government leaders would rather not address? O C.
Answers (1)
Suppose the risk premium on the market portfolio is estimated at 8% with a standard deviation of 22% You decide to put 25% of your money in Toyota and 75% of your money in Ford Suppose the beta of Toyota = 1.10 Suppose the beta of Ford = 1.
Answers (1)
New Questions in Business
On January 1, Kirk Corporation had total assets of $851,000. During the month, the following activities occurred: Kirk Corporation acquired equipment costing $6,100, promising to pay cash for it in 60 days.
Answers (1)
Antonio derives more utility from spending an additional dollar on boots than on gloves. We can assume that: a. the marginal utility per dollar spent on boots is greater than the marginal utility per dollar spent on gloves. b.
Answers (1)
Which profession is most likely to be concerned with the effect of supervisors management styles?
Answers (1)
The primary goals of inventory managers are to maintain a sufficient quantity of inventory to meet customers' needs, ensure inventory quality meets customers' expectations and company standards, and minimize the cost of acquiring and carrying an
Answers (1)
Stacy Hanes is an African-American woman who has recently taken her first job and does not seem to like the work environment at all, Her colleagues put down her ideas at team meetings and refer to them as "stupid.
Answers (1)
Home » Business » John is the sole proprietor of a furniture manufacturing business. His 18 year-old daughter Jane is an employee of the business and works alongside John in making the furniture. Jane earns $40.00 per hour. She works 40 hours per pay period.
Sign Up Forgot Password?