Question

If Joey worked for himself and called his company “Joey’s Construction Company” and made $20,750 per year, how much would he pay per year in total Social Security and Medicare tax?

Answer 1

The total Social Security and Medicare tax that Joey would pay in a year would be $3,175.25.

Social Security taxes apply only to the first $142,800 of income in a year. If Joey's income is $20,750 per year, and assuming that all of his income is subject to both Social Security and Medicare taxes, we can calculate the taxes as follows:

Social Security tax: $20,750 * 12.4%

= $2,573

Medicare tax: $20,750 * 2.9%

= $602.25

Therefore, the total Social Security and Medicare tax that Joey would pay in a year would be

=$2,573 + $602.25

= $3,175.25.

Answer 2

Answer:

He would pay $3,154 in Social Security and Medicare tax

Step-by-step explanation:

Given that Joey worked for himself, he must pay doule the amount of Social Security and Medicare taxes to the government.

This makes 15.2% of $20,750

`\begin{gathered} =(15.2)/(100)*20750 \\ \\ =3154 \end{gathered}`

He would pay $3,154 in total Social Security and Medicare tax