Understanding Taxes - Tax Tutorial: Payroll Taxes and Federal Income Tax Withholding

Module 14: Self-Employment Income and Self-Employment Tax

Page 3 of 11

Quick Check

"Answer the following multiple-choice questions about self-employment income and the self-employment tax by clicking on the correct answers. To assess your answers, click the Check My Answers button at the bottom of the page.

Which worker is classified as an independent contractor?

A. A worker at a fast-food restaurant
B. A manager at a bicycle manufacturing company
C. A landscape gardener who works for herself and provides services to several corporate customers
D. A salesperson in a department store

Which statement is true?

A. Employee earnings are reported on Form 1099-NEC.
B. Payments made to independent contractors are generally reported on Form 1099-MISC.
C. An individual can be an employee or an independent contractor but not both.
D. An intermittent activity engaged in primarily for pleasure is considered a business.