Have you ever been an employee or SE in that whole time? They pay half of FICA for you, - that is, 7.65% (half of 15.3%).

Posted: Feb 23rd, 2019 - 6:19 pm In Reply to: SE taxes - MT

It's definitely not a neglible difference being an IC and having to pay the full 15.3% for Social Security and Medicare yourself.

That's an automatic over 7% decrease in pay right there when you're an IC vs. an employee or statutory employee (and that's not even including loss of PTO, etc.).

LINK/URL: https://www.thebalancesmb.com/self-employment-tax-differences-399036

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