Earned Income for non-US citizen

[katdmin]

Hello, 

I am working on a profit sharing plan with partners paid on K-1s.  They are both Canadian citizens.  The CPA stated that because of that, they aren't subject to self employment income tax.  Normally I would take line 14a and do all the required calculations/deductions.  But if they aren't subject to taxation, do I simply use line 14a for my calcs and testing?  Someone in my firm indicated that, but it seems a little too easy  

Thanks!

 

Kat