All of the following statements regarding self-employment income/tax are true except:
A)The self-employment tax is imposed on net earnings from self-employment when self-employment income is over $400.
B)Self-employment tax is computed separately for married individuals filing joint returns.
C)Independent contractors are subject to self-employment tax on the amount of net earnings from the self-employment activity.
D)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.

Question

Quizplus · Accepted Answer

This statement is false. Employees who have a business in addition to their regular employment are still subject to the self-employment tax on their self-employment income. FICA withholding only applies to the wages earned from their regular employment.

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