During 2017, Kyle Has Net Income of $200,000 from Consulting

question 93

Multiple Choice

During 2017, Kyle has net income of $200,000 from consulting as an independent contractor. How much must Kyle pay for self-employment tax (rounded to the nearest dollar) ?

• A) $30,600
• B) $21,129
• C) $20,050
• D) $15,300

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Definitions:

Straight Commission Plan

A compensation structure where an employee's earnings are derived entirely from commissions made from the sales they generate.

Percentage Commission

A method of compensation where an employee or agent is paid a percentage of the sales they generate or the deals they close.

Intrinsic Rewards

The personal satisfaction and enjoyment derived from completing a task or achieving a goal, independent of external rewards or recognition.

Extrinsic Rewards

Rewards given to employees that are external to the job itself, such as pay, benefits, bonuses, and promotions, aimed at motivating employees' performance.