Question

Tony Romano is self employed. His annual adjusted earnings are $58,238.74. How much does he need to pay for Medicare tax (2.9%) ?

Answer 1

Since Tony is self-employed, he will have to pay all of the tax himself.

Take his adjusted earnings times the tax rate

58238.74 * 2.9%

58238.74 * .029

1688.92346

Rounding to the nearest cent

1688.92