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

question 1396

Multiple Choice

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

• A) independent contractors are subject to self- employment tax on the amount of net earnings from the self- employment activity.
• B) 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.
• C) the self- employment tax is imposed on net earnings from self- employment when self- employment income is over $400.
• D) self- employment tax is computed separately for married individuals filing joint returns.

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Definitions:

Gross Margin

A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage, indicating the financial health and profitability of a product or service.

Marketing Plan

A comprehensive strategy outlining an organization's advertising and marketing efforts, including target markets, marketing objectives, and initiatives to achieve them.

Ability To Make A Profit

The ability to make a profit reflects a business's capacity to generate more revenue than its expenses through its operations and strategies.

Manufacturing And Operations

The processes involved in producing goods and overseeing all aspects of production, from the raw materials stage to the final product.