Is bonus income reported on a 1099 subject yo social security taxes?

[myles120]

Is bonus income subject to social security taxes?

[Patrice · Accepted solution]

Yes, If you receive a 1099-MISC and the bonus income is in Box 7 then you will be subject to self-employment taxes which includes social security and medicare taxes.  Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. 

The 2016 Self-Employment tax rate on net earnings is

15.3% (12.4% social security tax plus 2.9% Medicare tax).