SELF EMPLOYMENT

A visually engaging infographic illustrating self-employment concepts, such as income averaging, allowable expenses, and verification methods, with a rural farm backdrop and symbols of entrepreneurship like tools and paperwork.

Self Employment Essentials Quiz

Are you self-employed or thinking of starting your own business? Test your knowledge with our Self Employment Essentials Quiz!

Learn important facts about self-employment, including:

  • Income averaging for seasonal businesses
  • Allowable self-employment expenses
  • Verification methods for self-employment
10 Questions2 MinutesCreated by CreatingCactus752
What question should be asked if a customer claims to be self-employed?
Do your own the business?
Do you work for someone else?
Do you have employees?
If a farmer sells his crops once a year, his income should be averaged over 12 months?
True
False
A deer processor makes $2000 over a 3 month period, the same period every year. This income is divided by
3 months
12 months
1 month
What are allowable costs for self-employment?
Cost of labor
Depreciation
Raw Materials
Income Taxes
Farmers income is calculated differently.
True
False
A farmer's home and property is excluded from resources.
True
False
How many hours does a customer have to work in a week in order to be exempt from the Employment and Training (E&T) work requirement?
20 hrs/wk
30 hrs/wk
40 hrs/wk
A self-employment customer has Tax and Social Security payments that are the individual’s responsibility.
True
False
What are acceptable forms of verification of self-employment?
Bookkeeping records
Other records maintained by the business owner that allows a calculation of the income and expenses
Sales and expenditure records
Paystubs
The following self-employment expenses are not allowed
Income Taxes
Fines and Penalties
Legal and professional fees
Business supplies
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