What Social Security Tax would a self-employed individual pay on an annual salary of $75,000?$4,650$11,475$7,500$10,000
Question
What Social Security Tax would a self-employed individual pay on an annual salary of $75,000?
- $4,650
- $11,475
- $7,500
- $10,000
Solution
The Social Security tax rate for self-employed individuals in 2021 is 12.4%. To calculate the Social Security tax on a $75,000 salary, you would do the following:
- Convert the tax rate from a percentage to a decimal: 12.4% = 0.124
- Multiply the salary by the tax rate: 9,300
So, a self-employed individual with an annual salary of 9,300 in Social Security tax. However, this option is not listed in your choices. Please check the tax rate or the options again.
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