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Simple English definitions for legal terms

Self-employment tax

Read a random definition: litigious

A quick definition of Self-employment tax:

Self-employment tax: When someone works for themselves, they have to pay a special tax called self-employment tax. This tax is made up of two parts: Social Security tax and Medicare tax. Social Security tax is 12.4% of the money they make, up to a certain amount each year. Medicare tax is 2.9% of all the money they make. If they make more than $200,000, they have to pay an extra 0.9% for Medicare tax. Self-employed people have to pay both parts of the tax, but they can take some of it off their taxes as a business expense.

If you want to know how much self-employment tax you have to pay, you can use a tool to calculate it.

A more thorough explanation:

Self-employment tax is a tax that people who work for themselves have to pay on their profits. It includes two parts: Social Security taxes and Medicare taxes. Social Security taxes are 12.4% of a person's profits up to a certain amount each year, which is currently $142,800. Medicare taxes are 2.9% on all profits, but if a person's wages exceed $200,000, an extra 0.9% Medicare tax applies. Unlike regular employees, self-employed people have to pay both the individual and employer parts of FICA taxes, but they can deduct the employer portions as business expenses.

For example, if someone runs a small business and makes a profit of $50,000 in a year, they would have to pay $6,200 in Social Security taxes and $1,450 in Medicare taxes. This means they would have to pay a total of $7,650 in self-employment tax.

Another example would be a freelance writer who earns $100,000 in a year. They would have to pay $12,400 in Social Security taxes and $2,900 in Medicare taxes. If they also had to pay an extra 0.9% Medicare tax, they would have to pay an additional $900. This means they would have to pay a total of $16,200 in self-employment tax.

These examples illustrate how self-employment tax works and how it can affect people who work for themselves. It's important for self-employed individuals to understand how much they owe in taxes and to budget accordingly.

self-employed | Self-executing

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texaslawhopefully
22:30
@KnowledgeableRitzyWasp: That all sounds great. It sounds like it has fairly diverse cuisine for a smaller city
yeah there are so many good cuisines in ithaca
renard99
22:31
@lilypadfrog: that’s a pity I’da be liking them all
texaslawhopefully
22:31
Only food I’m going to miss for sure if I leave Texas is texmex
22:31
waspy hasnt had thai food in ithaca yet. ithaca thai is so good
^^^^ truuuuuu
22:32
there are two major thai places and they have very similar names bc a divorced husband and wife own them lol
22:32
personally i think taste of thai is better than taste of thai express but thats just me
i had pho tho and it was really good and huge portions
texaslawhopefully
22:32
Glad they have good Thai food, I love Thai food! Can’t wait to visit :)
22:33
when tex goes to ithaca i want to come
Dkk
22:34
Crying Tiger, best Thai dish.
damn im so hungry all i had today was a curry tonkatsu and buldak
and it was a lil baby noodle cup
vvv hungry
22:36
curry tonkatsu so yummeh
22:36
whats even open rn? pizza?
CTB is it i think
22:37
is collegetown pizza not open
22:37
i used to get a slice from there or wings over at like 1am after my shift at the restaurant
Dkk
22:48
Ross Ulbricht free. God Bless Trump. Huge win.
JeremyFragrance
22:54
agreed
texaslawhopefully
22:55
This is an interesting read: https://thedispatch.com/article/birthright-citizenship-trump-implications/
Dkk
23:01
I mean, idk how it's possible to end birth right citizenship without amending the constitution because to me the 14th amendment is pretty clear about it.
ross ulbricht tried to hire a hitman to kill 5 people
i am not that sympathetic to him
Dkk
23:04
@KnowledgeableRitzyWasp: That might have been an FBI agent. It was most likely him and he was most likely doing it to retrieve stolen funds that corrupt FBI agents stole, but yeah moral gray area but me personally, cool with hitmen. It's not like it is uncommon to hire hitmen. I don't think the action itself is necessarily wrong but the intent behind it can be.
Dkk
23:05
Like, Boeing whistblowers being killed by hitmen = wrong but a guy hiring hitmen to retrieve stolen funds = good to me.
texaslawhopefully
23:05
@Dkk: Yeah, for sure. My guess is it'll go to SCOTUS and it'll be 8-1 or 7-2, saying that EO was unconstitutional.
Dkk
23:06
Indeed. I need a count for how many exectuive orders he has signed and how many already have pending lawsuits.
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