Self-employment tax is a type of tax that self-employed individuals must pay. It is similar to the Social Security and Medicare taxes that employees pay, but self-employed individuals are responsible for paying both the employee and employer portions of the tax. Self-employment tax is calculated using Schedule SE (Form 1040), which is used to report self-employment income and expenses. The self employment tax rate is 15.3%, which is divided into two parts: 12.4% for Social Security and 2.9% for Medicare.
There are a number of benefits to using a self employment tax calculator. First, it can help you to ensure that you are paying the correct amount of taxes. Second, it can help you to avoid penalties for underpayment of taxes. Third, it can help you to plan for your tax payments so that you can avoid surprises when you file your taxes.