Sally is an electrician employed by Bogie Company. Sam is a self-employed electrician. During the current year, Sally's salary is $85,000 and Sam's net self-employment income is $85,000. Which of the following statements about the Social Security and self-employment taxes paid is/are correct?
I.Sam's self-employment tax is greater than the Social Security tax paid on Sally's income.
II.Sam and Sally pay the same amount of tax.

Question

Sally is an electrician employed by Bogie Company. Sam is a self-employed electrician. During the current year, Sally's salary is $85,000 and Sam's net self-employment income is $85,000. Which of the following statements about the Social Security and self-employment taxes paid is/are correct?
I.Sam's self-employment tax is greater than the Social Security tax paid on Sally's income.
II.Sam and Sally pay the same amount of tax.
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Quizplus · Accepted Answer

The Answer of Sally is an electrician employed by Bogie Company. Sam is a self-employed electrician. During the current year, Sally's salary is $85,000 and Sam's net self-employment income is $85,000. Which of the following statements about the Social Security and self-employment taxes paid is/are correct?
I.Sam's self-employment tax is greater than the Social Security tax paid on Sally's income.
II.Sam and Sally pay the same amount of tax.
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Sally Is an Electrician Employed by Bogie Company