The Self-Employment Contributions Act imposes a tax on the net earnings from self-employment derived by an individual from any trade or business.

Question

Quizplus · Accepted Answer

This is correct, the Self-Employment Contributions Act (SECA) does impose a tax on the net earnings from self-employment derived by an individual from any trade or business. The tax is calculated based on the individual's net earnings and is sometimes referred to as the self-employment tax.

The Self-Employment Contributions Act Imposes a Tax on the Net