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Description

Most taxpayers working for an employer have FICA and Medicare withheld from their wages. The amount withheld is matched by their employer. Consequently, they will receive retirement and medical benefits when they reach retirement age. They are also entitled to disability and survivor benefits. The self-employed individual must pay self-employment (SE) tax to be entitled to similar benefits. This is paid when they file their federal income tax return. The SE tax rates equate to both the employer’s and employee’s share of FICA and Medicare.

Publisher

Rural Tax Education

Publication Date

9-2016

Keywords

self-employment, tax, job

Disciplines

Education | Higher Education | University Extension

Self-Employment Tax

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