 |
|
Employment Tax
Self-employment Tax
(IRS Form 1040se) is a social security and Medicare tax primarily for individuals who work for themselves.by Roger Chartier:
It is similar to the social security and Medicare taxes withheld using the W4 form from the pay of most wage earners.
The website www.social-security.biz tell us that:
"
For 2011 the amount of (withholding) from your taxes for 2011 is down 2% .
For employees it is down from 6.2% to 4.2%
For self-employed it is down from 12.4% to 10.4%"
Next year it could go up again - we'll see.
Read this very informative page on Social Security changes - Q & A
For Employers:
For 2011 the amount is the same percentage
for the employer to kick in.
The W4 form from the employee is used to
determine what you have to pay.
Read these pages to get in line with what is
required by the IRS.
- Publication 15,Employers Tax Guide
- Publication 15-A, Employer's Supplemental Tax Guide
- Payroll Tax Cut For employers to read about the new changes in withholding.
- Notice 1036 2012 Percentage Method Tables for Income Tax Withholding
Employers are expected to start changing the withholding according to the new rules on January 1, 2001 but absolutely have to by the end of January 2012.