Unformatted text preview: earned income credit. I hope this made sense. Terri Explain self-employment (SE) tax. Who would need to file taxes using this rate? Self-employment tax is just what it says, the taxes you pay for being self-employed. If you work for a company that company pays half of your OASDI and HI taxes, this is why only 6.2% and 1.45% come out of your check, the company pays the other half. If your self employed you are responsible for paying the entire amount (15.3%). I think this is actually a fair amount, the rates are the same for everyone, and the only difference is that working for someone else the rate gets split so you do not notice it as much. An Example of people that would have to pay this tax would be, independent contractors....
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- Spring '10
- Business, Federal Insurance Contributions Act tax, Self-employment