Most people are not subjected to the self-employment tax because: (Their withholding is greater than the alternative minimum tax/ There is a liberal exemption amount to reduce the tax base on which self-employment tax is calculated /They are classified as independent contractors for tax purposes/Because they are classified as employees for tax purposes)Employees pay employment tax: (As a part of their federal income tax return/Through withholding and in amounts )Which: (are determined /Are not reported /Must be matched)by their employers.