Question

eBooks Calculator Discussion Question 12-9 (L0.6) Joan is a self-employed consultant. What is her exposure to the Federal self-employment tax? What tax rates that apply to Joan's profits, and the income base amounts for the year? Individuals with net earnings of $ 400 or more from self employment are subject to the self-employment tax. For 2019, the self-employment tax is 15.3 X percent of self-employment earnings up to $ 1 X for the Social Security portion plus 2.9 percent of the total amount of self-employment earnings for the Medicare portion. Self-employed taxpayers deducta portion of the self-employment tax in determining the self-employment tax as well as a deduction for Correct Check My Work The FICA tax has two components: Social Security tax and Medicare tax. Both the employer and the employee pay the tax. However, an emplo may conduct a trade or business in a self-employment capacity, and these profits may require the payment of income and self-employment ta

Answer 1

For 2019, the self employment tax is 12.4% of self employment earnings up to $132,900.

The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).