Paul Warren is a self-employed mechanic. Last year he had total gross earnings of $44,260. What are Paul’s quarterly social security payments due to the IRS?

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2744.12

To calculate Paul Warren's quarterly social security payments due to the IRS, we first need to determine his net earnings for the year.

Self-employed individuals like Paul are required to pay self-employment tax, which consists of both social security tax and Medicare tax. The social security tax rate for self-employed individuals is 12.4%. However, self-employed individuals are only responsible for paying the tax on a portion of their net earnings.

To find the net earnings subject to self-employment tax, we use the following calculation:

Net Earnings = Total Gross Earnings - Deductions - Expenses

Since we don't have information about Paul's deductions and expenses, let's assume that he doesn't have any deductions or expenses. Therefore, his net earnings would be equal to his total gross earnings:

Net Earnings = $44,260

Now, let's calculate Paul's social security tax payments for each quarter. The social security tax is only applied to the first $137,700 of net earnings for the year. This limit is called the "social security wage base."

Quarterly Social Security Payments = (Net Earnings / 4) * Social Security Tax Rate

Quarterly Social Security Payments = ($44,260 / 4) * 0.124

Quarterly Social Security Payments = $11,065 * 0.124

Quarterly Social Security Payments = $1,371.26

Therefore, Paul Warren's quarterly social security payments due to the IRS would be $1,371.26.