Asked by Pinky Melon on Jun 15, 2024
Verified
Self-employment tax is calculated on the gross earnings of the business.
Self-employment Tax
The tax self-employed individuals must pay to cover their Social Security and Medicare obligations.
Gross Earnings
The total amount of money an individual earns before any deductions or taxes are applied.
- Acknowledge the tax effects and rewards for self-employed persons, involving deductions tied to self-employment tax and health insurance provisions.
Verified Answer
SM
Siddhesh MaverickJun 20, 2024
Final Answer :
False
Explanation :
Self-employment tax is calculated on the net earnings of the business, which means it's based on the profits after deducting business expenses from gross earnings.
Learning Objectives
- Acknowledge the tax effects and rewards for self-employed persons, involving deductions tied to self-employment tax and health insurance provisions.
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