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.
As an independent contractor, you are your own employer and pay both employer and employee shares of Social Security and Medicare taxes. As of 2015, the self-employment tax rates were 12.4 percent for Social Security and 2.9 percent for Medicare for a combined rate of 15.3 percent.