if mario worked for himself and called his company \marios construction company\ and made $21,000 per year…

if mario worked for himself and called his company \marios construction company\ and made $21,000 per year, how much would he pay per year in total social security and medicare tax? a. $3,213.00 b. $1,163.20 c. $1,591.20 d. $2,560.66 2 of 10

if mario worked for himself and called his company \marios construction company\ and made $21,000 per year, how much would he pay per year in total social security and medicare tax? a. $3,213.00 b. $1,163.20 c. $1,591.20 d. $2,560.66 2 of 10

Answer

Explanation:

Step1: Identify tax - rates

Social - Security tax rate is 12.4% and Medicare tax rate is 2.9% for self - employed. Total self - employment tax rate is 12.4%+2.9% = 15.3%.

Step2: Calculate total tax

Multiply the annual income by the total tax rate. Tax = 21000×0.153. $21000\times0.153 = 3213$

Answer:

A. $3,213.00