Shanita is a self-employed event planner.She has net earnings profit)from her business of $63,220.Her self-employment taxes for the year are: Round your answer to 2 decimal places.)

Question

Quizplus · Accepted Answer

Self-employment tax is calculated as 15.3% of net earnings. For $63,220, the tax is $63,220 * 0.153 = $9,672.66. However, only 92.35% of net earnings are subject to self-employment tax, so $63,220 * 0.9235 * 0.153 = $8,932.70.

Shanita Is a Self-Employed Event Planner