Question

The self-employment tax rate is 15.3%. Which taxes are included in self-employment tax?
FUTA and SUTA taxes on net self-employment income.
Social security tax and FUTA tax on net self-employment income.
Social security tax and medicare tax on gross self-employment income.
Social security tax and medicare tax on net self-employment income.

Answer 1

Social security tax and Medicare tax on net self-employment income.

Explanation: The 15.3% self-employment tax consists of 12.4% Social Security and 2.9% Medicare, and it is applied to net self-employment income (after business deductions).