7. Bob employs a maid to clean his house. He pays her $1,800 during the current year.

What is the proper tax treatment of the FICA and Medicare tax for the maid?

a. None of the $1,800 is subject to FICA or Medicare tax.

b. The $1,800 is subject to the Medicare tax, but not the FICA tax.

c. $500 is subject to the FICA and Medicare tax.

d. The entire $1,800 is subject to the FICA and Medicare tax.

LO 9.6