Jorge has $150,000 of self-employment earnings from a sole proprietorship.Jorge's self-employment tax for 2019 is
A)$20,497.
B)$22,950.
C)$21,194.
D)$19,645.

Name: Jorge has $150,000 of self-employment earnings from a sole proprietorship.Jorge's self-employment tax for 2019 is A)$20,497. B)$22,950. C)$21,194. D)$19,645.
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Question

Quizplus · Accepted Answer

The correct answer is A because the self-employment tax is 15.3% of net earnings, so Jorge's self-employment tax is $150,000 x 0.153 = $22,950.

Jorge Has $150,000 of Self-Employment Earnings from a Sole Proprietorship