out References Mailings Review View Help EL AaBbcc Aa BbcAaBCD AaBbC AaBbccc 1 Normal Subtitle 1 No Spac... Heading! Heading 2 Paragraph VUREN VON WHILE Styles 2. Self-employed taxpayers are obligated to pay the SECA tax, which: a. must be reported on Schedule C. b. is only imposed on income for which the self-employed taxpayer receives a form 1099. 3. Compared to wage income, self-employment income: a. is always subject to higher social security and Medicare taxes. b. has a lower cap on social security and Medicare taxes. c. offers no deductions for SECA tax paid. d. is subject to SECA taxes which must be paid entirely by the taxpayer 4. When determining whether a shareholder of an corporation who is also an employee has received "reasonable compensation" for the services provided to the corporation, the IRS will consider which factors: a. The age of the shareholder/employee. b. How long the corporation has been in existence. c. The total number of employees of the corporation. d. What comparable businesses pay for similar services. e. All of the above. 5. For the current tax year, Ron has $10,000 in income from selling produce from his farm, al $5,000 loss from a small engine repair business, and $50,000 in profits from a landscapiro business. How much will Ron's gross income be for the year? a. $60,000 b. $55,000 C. $50,000 d. $10,000 6. To be eligible for social security retirement benefits, an individual must have a minimum of 40 quarters of coverage. (True/False). o