self-employment tax means: To be eligible for Social Security, a tax-separated person must make a payment. (in Stock Market Dictionary)

What else does self-employment tax mean?

  • The Federal Insurance Contributions Act **** tax, which a self-employed person must pay on their profits, is called the Self-employment Tax. There are two types of taxes: Medicare taxes and Social Security taxes. They operate in a different way and have separate operations. The Social Security taxes currently amount to 12.4 percent of a person’s annual profits, which is currently 142,800. Medicare taxes are 2.9% on all profits. However, if the person’s earnings exceed 200k, an additional.9 Medicare tax will apply. The employer and individual **** taxes must be paid by self-employed workers, unlike wage earners. However, they are allowed to deduct employer expenses. Click here to access a calculator that calculates **** taxes. (in Legal Dictionary)