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Level 1
posted Aug 28, 2024 4:41:32 PM

Self Employment Tax Cumulations for 2024

I have a full time job and also have a side gig.  I understand I need to pay self employment tax through my single member LLC on estimated quarterly taxes.  If I cap out my Social Security and Medicare contribution in the tax year through my full time employer, do I calculate my self employment tax based upon the assumption that my LLC revenue is a separate cumulator than my full-time position OR do I treat it was a combined cumulator between full time role (separate from my LLC) and side gig until I reach my combined 2024 max for the year?  When I reach the max contribution, do I still pay estimated quarterly tax payments?

0 2 13446
2 Replies
Level 15
Aug 28, 2024 5:02:26 PM

First of all only the Social Security part maxes out.  You still pay the Medicare tax on both your W2 and self employment income.     So if your W2 is over the max for SS you do not pay any SS on your self employment.   I assume your SMLLC is NOT an S Corp?  If it is a S corp I don't know how it works.  Otherwise a SMLLC is filed on Schedule C in your personal return.  

 

The SE tax includes what you already paid in from your W2 so your schedule SE tax will only be the difference up to the max amount of $9,932.40 for social security. The max for social security for 2023 is 6.2% of wages plus schedule C net profit up to $160,200. Medicare is 2.9% (both er & ee parts) of all wages & schedule C profit - no max.

 

You still might need to pay estimated payments to cover the income tax and Medicare tax on your self employment income.  

Level 15
Aug 28, 2024 5:09:36 PM

I looked up 2024 amounts.  For 2024 the max for Social Security is $10,453.20 on $168,600 of wages.