if mario worked for himself and called his company \marios construction company\ and made $20,750 per year…

if mario worked for himself and called his company \marios construction company\ and made $20,750 per year, how much would he pay per year in total social security and medicare tax?\na. $3,174.75\nb. $3,182.40\nc. $1,591.20\nd. $1,163.20

if mario worked for himself and called his company \marios construction company\ and made $20,750 per year, how much would he pay per year in total social security and medicare tax?\na. $3,174.75\nb. $3,182.40\nc. $1,591.20\nd. $1,163.20

Answer

  1. Discipline and Sub - field:
    • This problem is related to calculating Social Security and Medicare taxes, which falls under the Business discipline, specifically in the sub - field of Finance.
  2. Answer:
    • First, we need to know the Social Security tax rate and Medicare tax rate. As of common knowledge, the Social Security tax rate is 6.2% (up to a certain income limit) and the Medicare tax rate is 1.45% for employees (and self - employed pay both the employee and employer portions). For self - employed, the combined Social Security and Medicare tax rate is (6.2%+6.2% + 1.45%+1.45%) = 15.3%.
    • If Mario made $20,750 per year, the total Social Security and Medicare tax he would pay is $20,750×0.153 = $3,174.75.
    • So the answer is A. $3,174.75