Bob employs a maid to clean his house. He pays her $1,040 during the current year. What is the proper tax treatment of the Social Security and Medicare tax for the maid?

a. Bob is not required to pay or withhold Social Security and Medicare taxes on the $1,040.
b. The $1,040 is subject to the Medicare tax, but not the Social Security tax.
c. $500 is subject to the Social Security and Medicare tax.
d. Bob is required to withhold Social Security and Medicare taxes on the entire $1,040.