How much will you pay in self-employment taxes

Reference no: EM131975368

Problem

Self-employment taxes comprise Social Security and Medicare. The current limit to the Social Security tax is $118,500. There is no limit for Medicare tax. Suppose you start a small construction business and have a net income of $250,000 at the end of the year. Your business is structured as a sole proprietorship. How much will you pay in self-employment taxes?

Reference no: EM131975368

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