Reference no: EM133121063

Question - During 2021, Sara received $4,000 in cash from the parents as payment for her babysitting services at their homes. The parents also left food for Sara to eat while she was tending to the children, and she ate food worth $600 while babysitting in 2021. During the year, Sara also had $75 of total expenses from printing flyers, which she placed on car windshields to advertise her babysitting services throughout the neighborhood. Assume Sara pays income tax at a 15% rate. Explain what combined income and other taxes Sara would pay as a result of these activities (1) as a properly-classified employee during 2021 and (2) as a properly classified independent contractor during 2021.