All of the following statements regarding self-employment income/tax are true except:
◦ The self-employment tax is imposed on net earnings from self-employment when self-employment income is over $400.
◦ Self-employment tax is computed separately for married individuals filing joint returns.
◦ Independent contractors are subject to self-employment tax on the amount of net earnings from the self-employment activity.
◦ Employees who have a business in addition to their regular employment are not subject to the self-employment tax since FICA is withheld on their wages.