Question: Your Client Logan Lawrence is self employed. He owns and operates Logans Landscaping. He has selfemployment income of $100,000 in 2020. Write a detailed letter

Your Client Logan Lawrence is self employed. He owns and operates Logan’s Landscaping.

He has selfemployment income of $100,000 in 2020. Write a detailed letter to Logan Explaining

Self Employment tax. Include the following points in your letter:

● A description of Social Security tax

● A description of medicare tax.

● An explanation of the wage cap for social security

● A review of the rates for 2020

● An explanation of the employer and employee portion of self employment tax.

● A calculation of Logan’sself employment tax liability for 2020

● The deductibility of the employer portion of self employment tax

Your letter should be in good business form.

Step by Step Solution

★★★★★

3.40 Rating (172 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Self Employment tax is the tax for small business owners that they need to pay to federal governemen... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Multiple Choice 1. Amy sees an amazing shirt on sale for $10, marked down from $1000. The sale ends tomorrow, when the shirt will go back up to its original price. Amy must have the shirt, but...

Q:

Depot, Inc., a C corporation, has revenues of $400,000 and expenses of $500,000 excluding the Federal tax liability for 2015. Included in the revenues are long-term capital gains of $25,000. a)...

Q:

In 1991, Social Security and Medicare taxes were itemized separately on paycheck stubs and tax forms for the first time. The table on the right gives a historical look at Social Security and Medicare...

Q:

You are the newly appointed negotiator by Belmont Sutton Company to lead the negotiations which entail a deal of several million of turnover in favour of the organisation. You are provided with some...

Q:

Your Client Logan Lawrence is self employed. He owns and operates Logan's Landscaping. He has selfemployment income of $100,000 in 2020. Write a detailed letter to Logan Explaining Self Employment...

Q:

Your Client Logan Lawrence is self employed. He owns and operates Logan's Landscaping. He has selfemployment income of $100,000 in 2020. Write a detailed letter to Logan Explaining Self Employment...

Q:

Module 4 Assignment Your Client Logan Lawrence is self employed. He owns and operates Logan's Landscaping. He has selfemployment income of $100,000 in 2021. Write a detailed letter to Logan...

Q:

Please solve the given problem below. With detail. Your Client Logan Lawrence is self-employed. He owns and operates Logan's Landscaping. He has a self-employment income of $100,000 in 2021. Write a...

Q:

Noah and Joan Arc live with their family in Dayton, OH. Noahs Social Security number is 434-11-3311. Noah was born on February 22, 1984, and Joan was born on July 1, 1985. Both enjoy good health and...

Q:

Noah and Joan Arc live with their family in Dayton, OH. Noahs Social Security number is 434-11-3311. Noah was born on February 22, 1984, and Joan was born on July 1, 1985. Both enjoy good health and...

Q:

Noah and Joan Arc live with their family in Dayton, OH. Noahs Social Security number is 434-11-3311. Noah was born on February 22, 1984, and Joan was born on July 1, 1985. Both enjoy good health and...

Q:

On December 31, 2014, Pate Corporation acquired 80% of Starmont Corporations common stock for $900,000 cash. Assume that the fair values of Starmonts identifiable assets and liabilities equaled book...

Q:

The net common equity increased over a year by $3,000. There were no new stock issues and $2,000 was spent in stock buybacks. What was the retained earnings for the year?

Q:

Find the general antiderivatives. A . f ' ( x ) = 1 5 x 2 - 6 x + 1 x 2 B . g ' ( x ) = s i n x + c o s x + s e c x t a n x

Q:

Comparing two sequences of characters arises in several applications including the life sciences and information retrieval. Suppose you are given two sequences of characters drawn from a common...

Q:

Bacterial DNA polymerase I and DNA polymerase III perform different functions during DNA replicatio a. Identify the principal functions of each molecule. b. If mutation inactivated DNA polymerase I...

Q:

1) The strands of double stranded DNA are arranged in ___________fashion and form a__________ A) parallel.......Beta Pleated Sheet B) Anti-Parallel........Beta Pleated Sheet C)...

Q:

1. In DNA transcription, which of the following statements is/are accurate with respect to the definitions for the template versus the non-template DNA strands? A) The non-template strand is the...

Q:

Ethics Case Lorenzo Peterson was swimming in a swimming pool with a friend at an apartment complex. Lorenzo watched his friend swim to the bottom of the pool, slide an unattached drain cover away,...

Q:

With one exception, direct materials variances are identical to those computed for . (Enter only one word per blank.)

Q:

Your Client Logan Lawrence is self employed. He owns and operates Logans Landscaping. He has selfemployment income of $100,000 in 2020. Write a detailed letter to Logan Explaining Self Employment...

Q:

4. WinkHaus Corp. uses the balance sheet approach to estimate uncollectible account expense. At year- end an aging of the accounts receivable produced the following five groups 1. Not yet duc......

Q:

You are given the following list of matters for which new files must be opened. Suggest file names that conform to correct alphabetical filing and proper punctuation rules. a. City of Peterborough,...

Q:

Save Homework: Chapter 2 Score: 0 of 10 pts E2-17 (similar to) 3 of 6 (2 complete) HW Score: 19.33%, 19.33 of 100 pts Question Help The following transactions occurred for Lawrence Engineering:...

Q:

Question 34 Lawrence and Jane were negotiating a contract, for the purchase and sale of widgets, over cocktails. Jane believed that Lawrence was completely intoxicated and she was hoping to take...

Q:

Tax Return #2 Lawrence Logan Use the following information to complete Lawrence Logans 2022 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps. You...