Work out the 15.3% you owe on 1099 and business income for — — and how much a W-2 job already covers.
Gross revenue minus business expenses — the bottom line of your Schedule C, not what you invoiced.
All net profit is subject to self-employment tax.
Only this portion pays FICA. The rest comes out as distributions.
Used for partnerships to apportion profit. Leave at 100% otherwise.
Your own W-2 job, if you have one. This matters more than most people expect — see below.
| Component | Taxable Base | Amount |
|---|---|---|
| Social Security (12.4%) | — | — |
| Medicare (2.9%, no cap) | — | — |
| Additional Medicare (0.9%) | — | — |
| Total SE Tax | — | |
| Less: deductible half (above-the-line) | — |
The deductible half covers the 12.4% and 2.9% portions only — the 0.9% Additional Medicare surtax is not deductible.
| Structure | Payroll / SE Tax | Treatment |
|---|
Payroll taxes only. Excludes payroll service fees, the separate business return, state franchise fees, and income tax — see the note below.
Self-employment tax is separate from income tax — you owe both on the same profit. Rates, the Social Security wage base, and surtax thresholds are pulled live from the IRS and SSA. This is an estimate, not tax advice; an S-Corp election in particular has legal and payroll consequences well beyond the payroll-tax difference shown here. See our disclaimer.