Question

Doug is a self employed graphic designer. his net earnings from his commissioned work this year are 38,000. what is his seca deduction

Answer 1

Answer: $5369.40

Step-by-step explanation: took the quiz.

Answer 2

$4,712.

Explanation:

SECA stands for Self Employed Contributions Act. These taxes are computed from the net earnings, which in this case is $38,000.

The basic rate for SECA taxes is 6.2% for employeer and 6.2% for employee. In the case of people who are self employed, the taxes are double, because they are employee and employeer at the same time.

So, Doug have to pay 12.4% taxes, which is equivalent to

`0.124(38,000)=4,712`

Therefore, the SECA deduction for Doug is $4,712.