a worker is an independent contractor for retailsy inc. he has earned $34,817 this year. he has calculated…

a worker is an independent contractor for retailsy inc. he has earned $34,817 this year. he has calculated that he has $2,839 in business expenses. how much will he have to pay in self - employment tax? recall, the self - employment tax rate is 15.3%. a $4,892.63 b $489.26 c $5,327.00 d $2,839

a worker is an independent contractor for retailsy inc. he has earned $34,817 this year. he has calculated that he has $2,839 in business expenses. how much will he have to pay in self - employment tax? recall, the self - employment tax rate is 15.3%. a $4,892.63 b $489.26 c $5,327.00 d $2,839

Answer

Explanation:

Step1: Calculate net income

Net income = Earnings - Business expenses. So, $34817 - 2839=31978$.

Step2: Calculate self - employment tax

Self - employment tax = Net income×Tax rate. So, $31978\times0.153 = 4892.634\approx4892.63$.

Answer:

A. $4,892.63$