Calculate the total Social Security and Medicare tax burden

Calculate the total Social Security and Medicare tax burden on a sole proprietorship earning 2016 profit of $300,000, assuming a single sole proprietor. (Round your intermediate calculations to the nearest whole dollar amount.)

Total tax

Solution

Social security tax = 12.4% of income not exceeding 118500

So Such tax = 118500 * 12.4% = 14694

And meeicare tax is 8034

Total tax = $14694+$8034

=$22728