Enrolled Agent - Part 2 questions with correct answers 2024

Definition of Self-employed - Answer- You are self-employed if you carry on a trade or business as a sole proprietor or an independent contractor. Statutory employees - Answer- 1. Pay FICA tax through their employer, and so do not pay self-employment tax (Employer pays Social Security and Medicare taxes in the form of FICA). 2. Less expensive to hire than regular employees because the employer does not have to pay unemployment taxes. 3. Use Schedule C or C-EZ to report their wages and expenses. 4. A statutory employee has a check mark in box 13 of his or her Form W-2, Wage and Tax Statement. Unincorporated businesses owned and operated by spouses... - Answer- who share in the profits and losses is a PARTNERSHIP (whether or not they have a formal partnership agreement) , with 2 EXCEPTIONS: 1. Community income -business can be treated either as a sole proprietorship or a partnership. 2. Qualified joint venture