Find the Social Security tax and Medicare tax on the annual gross income of a self-employed individual. For a self-employed person, the FICA rate is 12.4% and the Medicare rate is 2.9%. Round to the nearest cent if needed.

Drew Laughlin’s annual gross income, as a self-employed person, is $58,723.25

To calculate the Social Security (FICA) and Medicare taxes for Drew Laughlin, we will use the given rates of 12.4% for Social Security and 2.9% for Medicare. Here’s the step-by-step calculation:

### 1. **Social Security Tax (FICA)**
\[
\text{Social Security Tax} = 58,723.25 \times 12.4\%
\]
\[
\text{Social Security Tax} = 58,723.25 \times 0.124 = 7,282.68
\]

### 2. **Medicare Tax**
\[
\text{Medicare Tax} = 58,723.25 \times 2.9\%
\]
\[
\text{Medicare Tax} = 58,723.25 \times 0.029 = 1,703.97
\]

### 3. **Total FICA and Medicare Taxes**
- **Social Security Tax:** $7,282.68
- **Medicare Tax:** $1,703.97

So, the total taxes Drew Laughlin would owe are:

- **Social Security Tax:** $7,282.68
- **Medicare Tax:** $1,703.97

Let me know if you need more details or clarifications. 

Here are some related questions:
1. What is the maximum taxable income for Social Security in 2024?
2. How does the FICA rate differ for employees versus self-employed individuals?
3. Are there any deductions available for self-employed individuals to reduce these taxes?
4. How would Drew's taxes change if his income increased to $100,000?
5. What other types of taxes are applicable to self-employed individuals?

**Tip:** Self-employed individuals can deduct half of their Social Security and Medicare taxes when calculating their taxable income.

Find the Social Security tax and Medicare tax on the annual gross income of a self-employed individual. For a self-employed person, the FICA rate is 12.4% and the Medicare rate is 2.9%. Round to the nearest cent if needed.
Drew Laughlin’s annual gross income, as a self-employed person, is $58,723.25.

Learn how to calculate the Social Security (FICA) and Medicare taxes for a self-employed individual earning $58,723.25 annually. Using the FICA rate of 12.4% and the Medicare rate of 2.9%, this step-by-step guide covers essential percentage calculations and tax rules.

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