[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-302822-105":53,"doc-detail-302822-en":126},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":119,"head_meta":121,"extra_data":123,"updated_unix":125},105,"en","self-employment-taxes-beginners-guide","Self-Employment Taxes - Beginner's Guide","","Beginner guidance to self-employment taxes explains who must pay when net profit reaches the $400 threshold for sole proprietors, independent contractors, and partners. It breaks down how the 15.3% rate is split between Social Security and Medicare, contrasts the self-employed person as both employer and employee, and outlines the deduction for half of the self-employment tax. It also covers how to calculate income using Schedule C/C-EZ and Schedule SE, notes filing requirements despite net losses, and addresses earnings limits and Medicare treatment.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":51,"@type":70,"position":76},"https://docshare.wps.com/template/general/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/self-employment-taxes-beginners-guide/302822/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/self-employment-taxes-beginners-guide/302822.png","ImageObject",442,249,{"name":88,"@type":89},"Riley West","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-09-21","2026-09-19",true,{"@type":98,"interactionType":99,"userInteractionCount":73},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"When do self-employment taxes apply?","Question",{"text":108,"@type":109},"If you earn at least $400 in net profit from sole proprietorship, independent contracting, or partnership work, the income is generally considered self-employment income and is subject to self-employment taxes.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"What is the self-employment tax rate and how is it allocated?",{"text":113,"@type":109},"The self-employment tax rate is 15.3%, with 12.4% for Social Security and 2.9% for Medicare. Unlike employees, the self-employed generally bear the full burden.",{"name":115,"@type":106,"acceptedAnswer":116},"How are self-employment taxes calculated and reported?",{"text":117,"@type":109},"Use Schedule C or C-EZ to figure net earnings, and Schedule SE to compute and report the self-employment taxes. If you have multiple businesses, combine net profits or losses to determine total earnings subject to the tax.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},302822,1790012408,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":50,"category_name":51,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":73,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":73,"language":135,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":136,"faqs":137,"seo_title":138,"seo_description":61,"update_tm":139,"read_time":9},1099523885074,"https://ap-avatar.wpscdn.com/davatar_9964176cb1d06d4a9deccf72a44ae3dc","Beginners Guide to Self-Employment Taxes  \nBeing your own boss may mean saying good-bye to office politics and long commutes, but you will not escape paying taxes. Self-employment taxes, which are similar to the FICA (Federal Insurance Contributions Act) taxes that wage earners pay, provide funds for Social Security benefits (old-age, survivors, and disability insurance) and Medicare benefits (hospital insurance) .  \nThe Texas Society of Certified Public Accountants offers the following overview of self-employment taxes so you can better understand your tax liability.  \nWho Pays Self-Employment Taxes?  \nIf you earned at least $400 in net profit from your work as a sole-proprietor, independent contractor, or partner in a partnership, the income you earn is generally considered self-employment income and is subject to self-employment taxes.  \nYour business can be full-time or part-time, you may also work for someone else as an employee, and you can even have more than one sole-proprietorship.  \nBut as long as your business is not incorporated, it’s likely that your net business income will be subject to self-employment taxes. You are required to pay self-employment taxes on your self-employment income even after you retire and receive Social Security benefits.  \nWhat Is The Self-Employment Tax Rate?  \nThe self-employment tax rate is 15.3 percent, with 12.4 percent allocated to the Social Security system and the other 2.9 percent going to Medicare. If you worked as an employee of a company, your employer would pay half, which means only 6.2 percent would be taken out of your wages for Social Security and 1.45 percent for Medicare.  \nBut as a self-employed individual, you are considered both the employer and the employee, which makes the entire selfemployment tax burden yours. You do, however, get a tax deduction for one-half of the self-employed taxes paid as an abovethe-line deduction to arrive at adjusted gross income.  \nHow Do You Calculate Self-Employment Taxes?  \nTaxpayers who are self-employed use Schedule C or C-EZ to figure their net earnings from self-employment. Schedule SE is used to compute and report self-employment taxes.  \nTaxpayers with more than one business producing self-employment income must combine the net profit or loss from each to determine the total earnings subject to self-employment taxes. If your business showed a net loss, you won’t owe selfemployment taxes, but you will still need to file Schedule C to report your loss.  \nDoes The Social Security Earnings Limit Apply?  \nFor 2006, the Social Security earnings limit for self-employed workers is $94,200, the same limit that applies to employees. The earnings limit means only the first $94,200 of your net business earnings, combined with your wages and tips if you have another job, is subject to the Social Security tax.  \nThe earnings limit is adjusted annually to reflect inflation. Regardless of how much you earn, all of your earnings are subject to the 2.9 percent Medicare part of the self-employment taxes.  \nWhat Tax Deductions Apply?  \nThere are two tax deductions that reduce your self-employment tax liability and attempt to place self-employed individuals on the same level as employees who are subject to FICA taxes.  \nFirst, your net earnings from self-employment are reduced by an amount equal to half of your total self-employment tax rate for the year. For 2006, this is 7.65 percent of the net earnings from self-employment.  \nSecond, when you complete your personal 1040 tax form, you can deduct half of your self-employment tax from your gross income. Because this deduction is made on the 1040 form and not on Schedule C, it does not have any effect on your net earnings or the amount of self-employment taxes you pay.  \nConsult With A CPA  \nThe rules covering self-employment taxes can be complex. Taxpayers who are new to self-employment should consult with a CPA for advice on fulfilling their tax obligations.  \nCopyright 2006, The American Institute ","cbCaip3tNZyyXPEY","https://ap.wps.com/l/cbCaip3tNZyyXPEY","pdf",17033,"English","# Who Pays Self-Employment Taxes?\n# Self-Employment Tax Rate\n# How Do You Calculate Self-Employment Taxes?\n# Social Security Earnings Limit\n# Tax Deductions\n# Consult With a CPA","[{\"question\":\"When do self-employment taxes apply?\",\"answer\":\"If you earn at least $400 in net profit from sole proprietorship, independent contracting, or partnership work, the income is generally considered self-employment income and is subject to self-employment taxes.\"},{\"question\":\"What is the self-employment tax rate and how is it allocated?\",\"answer\":\"The self-employment tax rate is 15.3%, with 12.4% for Social Security and 2.9% for Medicare. Unlike employees, the self-employed generally bear the full burden.\"},{\"question\":\"How are self-employment taxes calculated and reported?\",\"answer\":\"Use Schedule C or C-EZ to figure net earnings, and Schedule SE to compute and report the self-employment taxes. If you have multiple businesses, combine net profits or losses to determine total earnings subject to the tax.\"}]","Self-Employment Taxes - Beginner's Guide | PDF",1789797270]