Social Security when you are self-employed

Most people who pay into Social Security work for an employer. Their employer deducts Social Security taxes from their paycheck, matches that contribution, sends taxes to the Internal Revenue Service (IRS), and reports wages to Social Security.

However, self-employed people must report their earnings and pay their Social Security taxes directly to the IRS. These taxes will help determine your eligibility for benefits later.

You’re self-employed if you operate a trade, business, or profession, either by yourself or as a partner. You report your earnings for Social Security purposes when you file your federal income tax return.

If your net earnings are $400 or more in a year, you must report your earnings on Schedule SE, in addition to the other tax forms you must file.

Net earnings for Social Security are your gross earnings from your trade or business, minus your allowable business deductions and depreciation. Some income doesn’t count for Social Security and shouldn’t be included in figuring your net earnings.

You can read more about self-employment, paying your Social Security taxes and figuring and reporting your net earnings at www.socialsecurity.gov/pubs/EN-05-10022.pdf.

Social Security has been a cornerstone of American security for more than 80 years. As a self-employed person, your small business is another cornerstone in the foundation of our economy. Working together, we make this nation stronger.

We’re here for you, securing today and tomorrow. Remember, the most convenient way to contact us anytime, anywhere is to visit www.socialsecurity.gov.

More in Life

Hamilton continues celebration of the area with ‘Olympic Peninsula’ calendar

Ross Hamilton feels his annual photography calendar is a celebration of where… Continue reading

Local author shares perspective of women in Forest Service

Lauren Turner hopes to give women an exclusive look at the career… Continue reading

Sequim City Band, Sequim Community Orchestra join forces for holiday concert

‘Sequim’s the Season’ What: Sequim City Band’s annual Holiday Concert, with special… Continue reading

‘A Christmas Carol’ haunts SHS stage for one more weekend

Sequim High School’s All-School Play “A Christmas Carol” runs for one more… Continue reading

Men’s gospel group, women’s gospel choir join voices for concerts

The Peninsula Men’s Gospel Singers have invited women to join their ranks… Continue reading

Port Angeles Fine Arts Center preps ‘Material as Metaphor’

To create freely, to make art outside what anyone expects: That’s what… Continue reading

A&E briefs — Dec. 12, 2018

Homeschool students set band concert The Northwinds Homeschool Band performs at 7… Continue reading

Holiday cactuses: It’s all about timing

Christmas cactuses are a favorite gift plant, known for their abundant brightly… Continue reading

Most Read