Jan hired Mike to dog sit for her beloved but lonely pooch, Barney (while she worked) starting on January 4, 2018 at $350 per month. Jan does not withhold any federal taxes. a. How much payroll tax should Jan pay for the year? b. If Mike came to Jan's house to walk Barney once a day and also walked other dogs in the neighborhood, is Jan required to complete Schedule H? Explain.

What will be an ideal response?


a. $350 × 12 = $2,200 × .153 = $642.60 
b. No, Mike is considered an independent contractor and would be responsible for his own FICA taxes.

Business

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