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.
-Frank Weller, surveyor, earned $25,118.67

Question

Quizplus · Accepted Answer

First, we need to calculate the Social Security tax and Medicare tax separately.

Social Security tax = (12.4% * $25,118.67) = $3,114.72
Medicare tax = (2.9% * $25,118.67) = $728.44

Therefore, the correct choice is D, which is the only option that has both these values rounded to the nearest cent.

Find the Social Security Tax and Medicare Tax on the Annual