Page 24 - Keeping Business Records

Self-employment Tax (3/5)

• Self-employment tax (SE tax) is a social
security and Medicare tax primarily for

Q Q individuals who work for themselves. Your
1 2 payments of SE tax contribute to your

Self-employment coverage under the social security system.
Income Tax
tax Social security coverage provides you with

retirement benefits, disability benefits,
Yearly Yearly
survivor benefits, and hospital insurance
(Medicare) benefits.
Q Q
3 4 • You must pay SE tax and file Schedule SE
(Form 1040) if either of the following
Employment tax Excise tax
applies.
• 1. Your net earnings from self-

Payroll Check if applicable employment were $400 or more.

• 2. You had church employee income of
$108.28 or more.

• Use Schedule SE (Form 1040) to figure

your SE tax. For more information, see
Publication 334, Tax Guide for Small

https://lentcpa.com Business. 22