First, find the gradient of line A. We know that the line passes through the points (1, 3) and (4, 9). To calculate the gradient, find the difference in the y coordinates and the difference in the x coordinates, and then divide the y value by the x value. 9 - 3/4 - 1 = 6/3 = 2. The gradient of line A is 2.
One government expert calculated that a construction worker earning $31,200 a year before taxes would be left with an annual net compensation of $10,660.80 if paid as an independent contractor, compared to $21,885.20 if paid properly as an employee.
The required reporting of self employment income begins at $400 for people that are self employed. The required issuance of 1099-MISC forms to independent contractors begins at $600. Generally, a taxpayer will not be penalized for not paying estimated taxes.