Find the Social Security tax and Medicare tax on the annual gross income of a self-employed individual. For a
self-employed person, the FICA rate is 12.4% and the Medicare rate is 2.9%. Round to the nearest cent if needed.
-Roberta Beltman, freelance photographer, earned $30,199.36

Question

Quizplus · Accepted Answer

To find the Social Security tax, we multiply the gross income by the FICA rate of 12.4%:
$30,199.36 x 0.124 = $3,744.72
To find the Medicare tax, we multiply the gross income by the Medicare rate of 2.9%:
$30,199.36 x 0.029 = $875.78
Therefore, the total Social Security and Medicare taxes for the self-employed individual are $3,744.72 + $875.78 = $4,620.50, which rounds to $4,620.50. The answer is B. The Social Security tax is calculated by multiplying the FICA rate (12.4%) by the gross income. So, for Roberta Beltman, the Social Security tax is:

0.124 x $30,199.36 = $3,744.72 (rounded to the nearest cent)

The Medicare tax is calculated by multiplying the Medicare rate (2.9%) by the gross income. So, for Roberta Beltman, the Medicare tax is:

0.029 x $30,199.36 = $875.78 (rounded to the nearest cent)

Therefore, the correct answer is B, which shows the Social Security tax and Medicare tax for Roberta Beltman as $3,744.72 and $875.78, respectively.

Find the Social Security Tax and Medicare Tax on the Annual