In 2013, Mike Elfred Received a $165,000 Salary from His

question 71

Multiple Choice

In 2013, Mike Elfred received a $165,000 salary from his employer and generated $39,000 net earnings from self-employment from his small business. Which of the following statements is true?

• A)Mike does not owe any self-employment tax because his salary exceeded the 2013 base amount ($113,700) for federal employment tax.
• B)Mike owes both the Medicare and Social Security tax portions of self-employment tax on his $39,000 earnings from his small business.
• C)Mike owes Medicare tax but not Social Security tax on his $39,000 earnings from his small business.
• D)Mike owes Social Security tax but not Medicare tax on his $39,000 earnings from his small business.

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Definitions:

Personal Space

The physical area surrounding an individual that is considered personal or private.

Body Language

Nonverbal cues expressed through physical behavior, such as gestures and posture, that communicate feelings and intentions.

Unethical Behavior

Actions that violate moral or professional principles, often leading to negative consequences.

Illegal Behavior

Actions that violate laws and are punishable by the legal system.