$3$ob employs a maid to clean his house. He pays her $$1,040$ during the current year. What is the proper tax treatment of the Social Security and Medicare tax for the

naid?

a$.$ The $$1,040$ is subject to the Medicare tax, but not the Social Security tax.

b$.$ Bob is not required to pay or withhold Social Security and Medicare taxes on the $$1,040.$

c$.$ $$500$ is subject to the Social Security and Medicare tax.

d$.$ Bob is required to withhold Social Security and Medicare taxes on the entire $$1,040.$