Double Taxation on Self Employed

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  • If you are an employee, the combined taxes you and your employee pay for Social Security are 6.2%
  • If your are self employed, the total taxes you pay for Social Security are 12.4%

Why are the self-employed taxed TWICE the employee?

One comment on “Double Taxation on Self Employed”

  1. 04/25/2009 gn

    This post completely inaccurate. Employers and Employees share the cost of Social Security equally, regardless of whom is the boss, whom is the employee, or if the same person is both.

    Employer/Employee relationship:
    Employer pays 6.2% and employee pays 6.2%, total 12.4%

    Self employed; it’s the same; you pay the 6.2% as the employer and the 6.2% as the employee, for a total of 12.4%.

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