John-H2021
Employee Tax Expert

Self employed

Hello Dawn,

 

Self-employment tax is a 15.3% additional tax you pay on your net profit from your business. When you work for an employer they pay into social security and Medicare and you pay into social security and Medicare. When you are self employed you are paying both the employer and employee share of the social security and Medicare.

Here is link that talks about self-employment tax in more detail

 

https://turbotax.intuit.com/tax-tips/self-employment-taxes/the-self-employment-tax/L8xXjolB4

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