Phyllis is an electrician employed by Bogie Company. Phil is a self-employed electrician. During the current year, Phyllis's salary is $75,000 and Phil's net self-employment income is $75,000. Which of the following statements about the Social Security and self-employment taxes paid is/are correct?
I.Phil's self-employment tax is greater than the Social Security tax paid on Phyllis's income.
II.Phil pays more self-employment tax than Phyllis pays in Social Security tax.
III.Phil and Phyllis pay the same amount of tax.
IV.Phil's self-employment tax is equal to the Social Security tax paid on Phyllis's income.

Question

Phyllis is an electrician employed by Bogie Company. Phil is a self-employed electrician. During the current year, Phyllis's salary is $75,000 and Phil's net self-employment income is $75,000. Which of the following statements about the Social Security and self-employment taxes paid is/are correct?
I.Phil's self-employment tax is greater than the Social Security tax paid on Phyllis's income.
II.Phil pays more self-employment tax than Phyllis pays in Social Security tax.
III.Phil and Phyllis pay the same amount of tax.
IV.Phil's self-employment tax is equal to the Social Security tax paid on Phyllis's income.
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Quizplus · Accepted Answer

The Answer of Phyllis is an electrician employed by Bogie Company. Phil is a self-employed electrician. During the current year, Phyllis's salary is $75,000 and Phil's net self-employment income is $75,000. Which of the following statements about the Social Security and self-employment taxes paid is/are correct?
I.Phil's self-employment tax is greater than the Social Security tax paid on Phyllis's income.
II.Phil pays more self-employment tax than Phyllis pays in Social Security tax.
III.Phil and Phyllis pay the same amount of tax.
IV.Phil's self-employment tax is equal to the Social Security tax paid on Phyllis's income.
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Phyllis Is an Electrician Employed by Bogie Company