has anyone that owns a small business had to pay a self employment tax?

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has anyone that owns a small business had to pay a self employment tax?

2007-01-20 01:12:29 · 3 answers · asked by Spirit 5 in Business & Finance ➔ Taxes ➔ United States

3 answers

The Self-Employment tax is the exact same thing as the Social Security and Medicare taxes that are withheld from employee paychecks. Social Security is 6.2%, Medicare is 1.45%, your employer has to contribute the exact same amount, and the SE tax of 15.3% is you paying both the employee and employer portions (6.2+6.2+1.45+1.45=15.3). It's a high percentage, yes, but if you plan on retiring some day it will come in handy.

2007-01-20 01:39:11 · answer #1 · answered by datette 3 · 2⤊ 0⤋

Yes. If your business is profitable, you pay SE tax.

2007-01-20 01:31:22 · answer #2 · answered by Anonymous · 2⤊ 0⤋

Yes, we all have to file SE tax.

What do you want to know?

2007-01-20 01:15:47 · answer #3 · answered by geek49203 6 · 0⤊ 0⤋