Juan recently started operating a flower shop as a proprietorship. In its first year of

operations, the shop had a taxable income of $$60,000.$ Assuming that Juan had no

other employment$-$related earnings,

The flower shop must withhold FICA taxes from Juan's earnings.

Juan must pay self$-$employment tax on the earnings of the business.

Juan will be exempt from self$-$employment taxes for the first $3$ years of operations.

Juan will be exempt from the Medicare tax because the business carnings are below the

threshold amount.