If you are self-employed, do you only pay medicare and social security if you are paying yourself?

Question

Are businesses required to pay federal taxes if you do not have employees?

Answer 1

No you pay Med and SS on any profits which you have from self-employment. A business (corporation) has to match the SS and MED which it's employees pay. As a self employerd person you also pay "both halfs" but you get a deduction from self employed income for 1/2 of what you pay.

Answer 2

As a sole proprietor, you will pay medicare and social security taxes on the net you report on your Schedule C. In fact, you will pay both the employer and employee portions of those taxes.

If you are a corporation, you won't be paying social security taxes without having employees. However, you should be paying yourself a salary if you are a corporation and taking money out. If not, the IRS can classify any income the corporation has as self-employment income, and tax you for social security and medicare on the net income of the corporation.

Answer 3

If you are self-employed, you pay Federal Income Taxes, State Income Taxes (if applicable), and Self-Employment Tax.

Self-Employment Tax is you Social Security and Medicare x 2.

Answer 4

I'm assuming you aren't incorporated, since that could change the answer.

Your business income would be shown on a schedule C that you'll file with your 1040, and yes, you pay medicare and social security taxes on the income. The income from the business is by definition yours, and subject to the self-employment tax as well as to income tax.