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 pays more self-employment tax than what Sally pays in Social Security tax.II.Sam's self-employment tax is equal to the Social Security tax paid on Sally's income.?
A. Only statement I is correct.
B. Only statement II correct.
C. Both statements are correct.
D. None of the statements are correct.
Answer: C
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