June Is a 20% Owner-Employee in the Woodbourne Corporation, an S

question 4

Multiple Choice

June is a 20% owner-employee in the Woodbourne Corporation, an S corporation. She is not paid a salary and her share of the corporation's income is $57,000.
I.June must pay self-employment tax at the rate of 15.3% on her share of the S corporation's income.
II.June must pay Social Security at a rate of 7.65% on her share of the S corporation income.
​

• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

---

Definitions:

Standardizing Work

The process of developing and implementing uniform procedures for tasks to increase efficiency and consistency.

Job Descriptions

A formal document that outlines the essential responsibilities, qualifications, and duties of a specific job position, serving as a foundation for hiring, performance evaluations, and role clarity.

Organic Structure

An organizational structure characterized by flexibility, decentralization of authority, minimal formal procedures, and encouragement of horizontal communication.

Organizational Structure

The framework that outlines how activities such as task allocation, coordination, and supervision are directed towards the achievement of organizational aims.