For taxpayers who receive both salary as an employee and self-employment income as an independent contractor in the same year, which of the following statements regarding FICA and self-employment taxes is most accurate?
A. Self-employment income is first applied against the Social Security limit and then salary is applied against the Social Security limit.
B. The Social Security limit applies to the self-employment income but not to the salary.
C. The Social Security limit applies to the salary but not to the self-employment income.
D. Salary is first applied against the Social Security limit and then self-employment income is applied against the Social Security limit.
Answer: D
You might also like to view...
Which of the following replaced the General Agreement on Tariffs and Trade?
a. CAFTA-DR b. NAFTA c. WTO d. UNASUR
Each period's ending cash balance becomes the beginning cash balance for the next period
Indicate whether the statement is true or false
Atlanta Company sold equipment for cash. The income statement shows a gain on the sale of $1020. The net book value of the asset was $3810. Which of the following statements describes the cash effect of the transaction?
A) negative cash flow of $4830 for financing activities B) negative cash flow of $2790 for operating activities C) positive cash flow of $4830 from investing activities D) positive cash flow of $2790 from investing activities
Which of the following entries records the acquisition of office supplies on account?
A) Office Supplies, debit; Cash, credit B) Cash, debit; Office Supplies, credit C) Office Supplies, debit; Accounts Payable, credit D) Accounts Receivable, debit; Office Supplies, credit