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  3. in 2023, mike elfred received a $165,000 salary fr

In 2023, Mike Elfred received a $165,000 salary from his employer and generated $39,000 net...

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Accounting

In 2023, Mike Elfred received a $165,000 salary from his employer and generated $39,000 net earnings from self-employment from his small
business. Which of the following statements is true?
Multiple Choice
Mike owes Social Security tax but not Medicare tax on his $39,000 earnings from his small business.
Mike owes both the Medicare and Social Security tax portions of self-employment tax on his $39,000 earnings from his small business.
Mike owes Medicare tax but not Social Security tax on his $39,000 earnings from his small business.
Mike does not owe any self-employment tax because his salary exceeded the 2023 base amount $160,200 for federal employment tax.
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