2. Paul is employed as a nuclear engineer with Atom Systems Consultants, Inc. (ASCI). Paul's pay stubs indicate that he had $7,320 withheld in federal taxes, $4,987 in state taxes. He earned $90,000 of wages subject to employee Social Security taxes and Medicare taxes. ASCI has an extensive fringe benefits program for its employees. 3. Paul earned salary of $88,000 (before subtracting his 401(k) and flexible spending plan contributions and before adding any additional possible income items described in paragraphs 4-7, 11). He contributed $7,200 to his 401(k) account, and he contributed $2,600 to his flexible spending account to purchase additional health insurance. 4. ASCI paid $632 of whole life insurance premiums to cover Paul's personal whole life insurance policy with a face value of $50,000. ASCI also paid health club dues of $825 to a nearby health club on Paul's behalf. 5. Taking advantage of ASCI's educational assistance program, during the fall Paul enrolled in two graduate engineering classes at a local college. ASCI paid his tuition, fees, and other course-related costs of $5,300. 6. Paul received free parking in the company's security garage that would normally cost $200 per month. 7. Paul manages the safety program for ASCI. In recognition of his superior handling of three potential crises during the year, Paul was awarded the Employee Safety Award on December 15. The cash award was $400. Given the following, what is Paul's ASCI wages for the Schedule SE form for the purpose of calculating social security

To calculate Paul's wages for the Schedule SE form, which is used to calculate self-employment tax, we need to determine his net earnings from self-employment. However, based on the information provided, Paul is an employee, not self-employed, so he would not typically need to file a Schedule SE. For employees, Social Security and Medicare taxes are calculated based on their wages and are typically withheld by the employer. Since Paul is an employee of Atom Systems Consultants, Inc. (ASCI), his Social Security and Medicare taxes should be calculated on his W-2 wages, not on Schedule SE. However, if we were to consider what his Social Security wages are, we would look at the following: 1. Salary: $88,000 2. 401(k) contribution: -$7,200 (not subject to Social Security tax) 3. Flexible spending account contribution: -$2,600 (not subject to Social Security tax) 4. Employer-paid insurance premiums: $632 (generally not subject to Social Security tax) 5. Employer-paid tuition: $5,300 (excludable from income under certain conditions) 6. Free parking: $200/month x 12 months = $2,400 (considered a fringe benefit and may be excludable up to certain limits) 7. Employee Safety Award: $400 (cash awards are generally considered taxable income) Based on the above, Paul's Social Security wages would generally be his salary minus his pre-tax contributions

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