During 2019, Kyle Has Net Income of $200,000 from Consulting

question 25

Multiple Choice

During 2019, 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)$21,836
• C)$21,722
• D)$15,300
• \(\begin{array}{|l|r|r|}
• \hline \text { Social Security and Medicare Taxes } & \mathbf{2 0 1 9} & \mathbf{2 0 1 8} \\
• \hline \text { FICA Social Security tax rate } & 6.2 \% & 6.2 \% \\
• \hline \text { SECA Social Security tax rate } & 12.4 \% & 12.4 \% \\
• \hline \text { FICA Medicare tax rate } & 1.45 \% & 1.45 \% \\
• \hline \text { SECA Medicare tax rate } & 2.9 \% & 2.9 \% \\
• \hline \text { Social Security income limit } & \$ 132,900 & \$ 128,400 \\
• \hline \text { Medicare tax income limit } & \text { None } & \text { None } \\
• \hline \text { Total SECA rate below SS income limit } & 15.3 \% & 15.3 \% \\
• \hline \begin{array}{l}
• \text { Deductible SECA rate below SS income } \\
• \text { limit }
• \end{array} & 7.65 \% & 7.65 \% \\
• \hline
• \end{array}\)

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Definitions:

Virions

The complete, infective form of a virus outside a host cell, consisting of RNA or DNA within a protective protein coat.

Adapt

The process by which organisms become better suited to their environment through changes in traits that improve survival and reproduction.

Mutations

Changes in the DNA sequence of a cell's genome, often resulting in genetic variation and potentially leading to evolutionary changes.

Descent With Modification

Descent with modification refers to the passing of traits from parents to offspring. Darwin recognized that, over time, this process could account for gradual change in species’ traits and homology.