Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
10ptt20
New Member

I've already paid my annual state business tax of $1071.38 for 2016. Why do I have to pay self employment tax? or are they the same?

First year in business and only made $11645.
1 Best answer

Accepted Solutions
bjs1942
Level 2

I've already paid my annual state business tax of $1071.38 for 2016. Why do I have to pay self employment tax? or are they the same?

They are not the same.  SE tax is like Social Security - where you are both the employer and the employee.  I assume the "state business tax" you mention is your state income tax on your earnings.

View solution in original post

3 Replies
bjs1942
Level 2

I've already paid my annual state business tax of $1071.38 for 2016. Why do I have to pay self employment tax? or are they the same?

They are not the same.  SE tax is like Social Security - where you are both the employer and the employee.  I assume the "state business tax" you mention is your state income tax on your earnings.
dogparkqueen
New Member

I've already paid my annual state business tax of $1071.38 for 2016. Why do I have to pay self employment tax? or are they the same?

self employment tax is your self paid social security tax.  You have to pay it.
10ptt20
New Member

I've already paid my annual state business tax of $1071.38 for 2016. Why do I have to pay self employment tax? or are they the same?

Yeah I figured as much. Thank you both for taking the time to reply! Happy Spring!
Dynamic AdsDynamic Ads
Privacy Settings
v