Which of the Following Statements Is True Regarding Compensation Paid

question 59

Multiple Choice

Which of the following statements is true regarding compensation paid to an owner of an entity taxed as a partnership who works for the entity?

• A)The compensation is deductible by the entity.
• B)The compensation is self-employment income to the owner-worker.
• C)The entity is not required to withhold FICA tax on the compensation it pays to the owner.
• D)All of these choices are correct.

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