Ava Has Net Earnings from Self-Employment of $125,000

question 4

Multiple Choice

Ava has net earnings from self-employment of $125,000.She also earned salary of $170,000 from a job held earlier in the year.How much Additional Medicare Tax will be owed on the self-employment income?

• A)$0
• B)$855
• C)$1,125
• D)$3,625

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Definitions:

Labor Union Membership

The status of being a member of an organization that represents workers' interests to employers, including negotiations for better wages and working conditions.

Collective Bargaining

The process where employers and unions negotiate conditions of employment such as wages, hours, and working conditions.

Craft Unions

Labor unions composed of workers who engage in a particular trade or have a particular skill.

Industrial Unions

Labor organizations that represent all workers, skilled and unskilled, employed in a specific industry.