Self employed tax Q for state employee with no Social security deduction??

Question

Hi,
A state employee contributes to the state pension fund and is excempt from social security contribution. Now if the employee earns 100K/Y thru state and then earns extra 50K as self employed , does he/she pay the social security of the self employed income or since he contributed to a pension fund , he/she is excempt from paying social security out of his self employed income.Thanks

Answer 1

You would owe self employment tax on the entire $50 K. There is no limit on the Medicare tax portion.

Answer 2

Only the state income is exempt from Social Security. Any self-employment income or income from a second job outside of the state's employment system would be subject to Social Security taxes.

Answer 3

You still have to pay out of your self-employment income, that doesn't fall under the state pension program.

Answer 4

ss contribution is only payable on the first $97.5K (next year will be $102K), anything above that is not accounted for in the ss contribution. So if you already earn $100K and pay your SS contribution on it you should not have to pay for the additional $50K. That has nothing to do with the pension plan.