Question

If Joey worked for himself and called his company “Joey’s Construction Company” and made $20,750 per year, how much would he pay per year in total Social Security and Medicare tax?

Answer 1

Answer:

He would pay $3,154 in Social Security and Medicare tax

Explanation:

Given that Joey worked for himself, he must pay doule the amount of Social Security and Medicare taxes to the government.

This makes 15.2% of $20,750

$\begin{gathered} =\frac{15.2}{100}\times20750 \\ \\ =3154 \end{gathered}$

He would pay $3,154 in total Social Security and Medicare tax