Which statement regarding self-employment is aIdentify each item as relating to Social Security tax, Medicare tax, or both. A. Earnings threshold over which no tax is levied Social Security tax Medicare tax Both B. Earnings threshold over which additional tax is levied Social Security tax Medicare tax Both C. 6.2% tax rate Social Security tax Medicare tax Both D. Must be withheld from employee earnings by the employer Social Security tax Medicare tax Both E. 1.45% tax rate Social Security tax Medicare tax Bothccurate? Answer: A. There is no threshold over which self-employment tax is not levied. B. There is no floor below which self-employment tax is not levied. C. Self-employment income is subject to Medicare tax in the same manner as earnings from which taxes are withheld by an employer. D. The self-employment tax rate is 7.65%, which represents the sum of the Social Security tax rate and the Medicare tax rate

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