Mary Beth is considering accepting some additional contract work. She is trying to evaluate whether the compensation for the job is worth the effort. Which tax rate should she use to calculate her after-tax proceeds of accepting the job?

Question

Social Studies

Shania

1 November, 12:46

Mary Beth is considering accepting some additional contract work. She is trying to evaluate whether the compensation for the job is worth the effort. Which tax rate should she use to calculate her after-tax proceeds of accepting the job?

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Answers (1)

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Evelin Farley · Answer 1

She should use marginal tax rate so she can calculate after-tax proceeds of accepting the job.

Explanation:

Marginal tax rate is defined as tax rate whose assessment is based on the next income. It is the amount of money you need to give from your nex taxable income and is expressed in percents - the limit above which it is paid is pre-set. It can include federal, state and local income taxes, federal payroll and self-employment taxes.