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Question 4

Self-employment tax is a contribution to the unemployment compensation program.

A. True
B. False


Sagot :

Final answer:

Self-employment tax is not a contribution to the unemployment compensation program; it is a tax paid by self-employed individuals for Social Security and Medicare.


Explanation:

Self-employment tax is not a contribution to the unemployment compensation program; it is actually a tax paid by self-employed individuals to fund Social Security and Medicare. Unemployment compensation is primarily funded by state and federal payroll taxes on employers as per the Federal Unemployment Tax Act (FUTA).


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