Scorporation shareholders are subject to self-employment tax on business income allocations from the s corporation if they are actively involved in the s corporation’s business.
a) true
b) false

The statement is false

Explanation:

S corporations are pass through corporations, which means income earned is passed to the owners and they are taxed at individual level.

Shareholders of S corporation earns income in the form of wages and distributions. Wages are charged with payroll taxes. S corporation shareholders are not subject to self-employment taxes which is an advantage for them.

Therefore, the statement is false

answer; ///the correct answer is (ftc) federal trade commission;