SELF-EMPLOYMENT TAX

Self-Employment Tax is the tax paid by a self-employed person to the federal government for his social security and medicare much like the tax deducted from regular employees. The due date of a Self-Employment Tax depend on the income of the self-employed person. The condition is that the net profit must reach $400 or more over the course of one tax year. Social security and medicare are normally paid in all businesses, whether it be the company or the employee. In the case of a self-employed person, he or she is both the company and the employee and naturally he or she must pay for both. Self-Employment Tax is under the Schedule SE accomplished with IRS Form 1040.

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