How different between self emplyoment and emplyee for tax?

Answer 1

For self employment you pay both halves of social security and medicare (15.3%) - if you're an employee, the employer pays half and you just pay 7.65%.

Income tax is the same either way, except you might have more allowable deductions for business expenses if you are self-employed.

Answer 2

If you work for someone as an employee, you are an employee and the taxes are taken out by your employer.

If you are self employed, you must pay your own taxes, including both portions of the medicare and social security (it totals about 15.3%.