A self-employment tax is required of an individual who owns his or her own business and makes

Question

Quizplus · Accepted Answer

A self-employment tax is required when an individual earns $400 or more in net profit from their business. This tax is designed to cover the individual's portion of Medicare and Social Security taxes, which are typically paid by employers for their employees. Therefore, if an individual is self-employed, they are responsible for paying both the employer and employee portions of these taxes.

A Self-Employment Tax Is Required of an Individual Who Owns