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  • Casual Articles - U.S. Federal Income Tax: Self Employment & Paying Self Employment Tax

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    The current rate for self employm

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    As a regular employee of a company, you are required by the Internal Revenue Service to have withheld from you earnings FICA (Federal Insurance Contributions Act) and Medicare taxes. FICA is also known as the Social Security tax. You pay these taxes into the government and they are used for retired, unemployed, and disabled Americans and their dependants in the form of Social Security payments and Medicare benefits.

    The Self Employment (SE) Tax is similar to these aforementioned taxes except that they are for self employed individuals and are imposed on self employed earnings. It allows those who are self employed to be eligible for these benefits later in life, just as an employee is.

    The current rate for self employme

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    ributions Act) and Medicare taxes. FICA is also known as the Social Security tax. You pay these taxes into the government and they are used for retired, unemployed, and disabled Americans and their dependants in the form of Social Security payments and Medicare benefits.

    The Self Employment (SE) Tax is similar to these aforementioned taxes except that they are for self employed individuals and are imposed on self employed earnings. It allows those who are self employed to be eligible for these benefits later in life, just as an employee is.

    The current rate for self employm

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    red, unemployed, and disabled Americans and their dependants in the form of Social Security payments and Medicare benefits.

    The Self Employment (SE) Tax is similar to these aforementioned taxes except that they are for self employed individuals and are imposed on self employed earnings. It allows those who are self employed to be eligible for these benefits later in life, just as an employee is.

    The current rate for self employm

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    t (SE) Tax is similar to these aforementioned taxes except that they are for self employed individuals and are imposed on self employed earnings. It allows those who are self employed to be eligible for these benefits later in life, just as an employee is.

    The current rate for self employm

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    allows those who are self employed to be eligible for these benefits later in life, just as an employee is.

    The current rate for self employment tax is 15.3%. That percentage is broken down into two (2) parts: 12.4% is for Social Security and 2.9% is for Medicare. Even if you are receiving Social Security or Medicare benefits and no matter your age you are still responsible for the self employment tax.

    In order to determine if you are responsible for this tax you must first know if you are considered self employed by the IRS. What exactly qualifies a person as self employed to the IRS you may ask?

    According to the IRS you are self-employed if any of these apply to you:

    - You carry on a trade or business as

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