Tuesday, January 31
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Tag: self employment tax

The Best Course of Action is to Pay Your SE Tax Before the Annual Filing Deadline

The Best Course of Action is to Pay Your SE Tax Before the Annual Filing Deadline

Finance
An individual who is self-employed, who has their own business, must pay self-employment tax. So, what is the amount of self employment tax? The amount of this tax is 15.3% of your gross income. 12.4% of this amount is paid to Social Security, while 2.9% is paid to Medicare (the sum). Payroll taxes and self-employment taxes are very different from one another because employees and their employers often share in this expense. However, independent contractors or small business owners are in charge of covering both costs. What is the self-employment tax rate for me? Self-employment tax may be applied to self-employed individuals who make $400 or more. It still applies even if the money was received in cash and no 1099 tax form was provided. How much SE tax can you pay? The se...