Definition of Self-employment Tax | Taxes for the Self-employed

Accounting Definitions

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Self-Employment Tax Definition

Self-employment taxes are paid by business owners who are sole proprietors and by those working as independent contractors. Partners in a business organized as a partnership are also subject to this tax.

Self-Employment Tax Extended Definition
Taxpayers in the United States are required to contribute to the Social Security program. Employees have taxes deducted from their paychecks and employers pay matching taxes.  Self-employed business owners who operate as sole proprietors or as part of a partnership must also contribute to the fund (Social Security tax and Medicare).

Related Articles

What is Self-Employment Tax? | Patriot Software
Do I Have to Pay Self-Employment Tax? | Patriot Software

Last Updated By

Jenna Hutkowski | Apr 18, 2023

Back to Top