All of the Following Statements Regarding Self-Employment Income/tax Are True

question 66

Multiple Choice

All of the following statements regarding self-employment income/tax are true except

• A)the self-employment tax is imposed on net earnings from self-employment when self-employment income is over $400.
• B)self-employment tax is computed separately for married individuals filing joint returns.
• C)independent contractors are subject to self-employment tax on the amount of net earnings from the self-employment activity.
• D)employees who have a business in addition to their regular employment are not subject to the self-employment tax since FICA is withheld on their wages.

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Definitions:

Consultants

Professional experts who are hired to provide advice and expertise in a specific field to solve problems or enhance the performance of an organization.

Absence Management

A strategic approach that organizations use to reduce the impact and occurrence of employee absenteeism, ensuring productivity is maintained.

Automated

The use of technology or machinery to perform tasks without human intervention, often improving efficiency and accuracy.

Remote Sites

Locations or workplaces that are situated apart from the main operations or headquarters of an organization, often accessed via telecommunications.