1. For taxpayers who receive both salary as an employee and self-employment income as an independent contractor in the same year, which of the following statements regarding FICA and self-employment taxes is most accurate?

1. Self-employment income is first applied against the Social Security limit, and then salary is applied against the Social Security limit.
2. Salary is first applied against the Social Security limit, and then self-employment income is applied against the Social Security limit.
3. The Social Security limit applies to the self-employment income but not to the salary.
4. The Social Security limit applies to the salary but not to the self-employment income.