15) jordan runs his own lawn care business, and is a 1099 independent contractor, and he is getting ready to…

15) jordan runs his own lawn care business, and is a 1099 independent contractor, and he is getting ready to pay his quarterly taxes. if his business made $31,550 in sales, and had $11,100 in costs; how much should he pay in quarterly taxes if his federal withholding rate is 14%?

15) jordan runs his own lawn care business, and is a 1099 independent contractor, and he is getting ready to pay his quarterly taxes. if his business made $31,550 in sales, and had $11,100 in costs; how much should he pay in quarterly taxes if his federal withholding rate is 14%?

Answer

Explanation:

Step1: Calculate the profit

Profit = Sales - Costs. So, $31550 - 11100=20450$.

Step2: Calculate the quarterly tax amount

Quarterly tax = Profit×Federal - withholding rate. Since the federal - withholding rate is 14% or 0.14, the quarterly tax is $20450\times0.14 = 2863$.

Answer:

$2863$