Self-Employment Tax (SECA)
- Payroll taxes and other issues
- Verifying employee SSNs
- What constitutes wages ?
- Who are employees ?
- 20 factors in determining employee or independent contractor status
- misclassified employees
- Updated views of the IRS 20 factors
- IRS web – Withholding for foreign athletes and entertainers
- Statutory employees
- Government employees
- Agricultural employees
- Ministers and religious organizations
- Leased employees and PEO organizations
- Family members
- Federal Insurance Contributions Act (FICA)
- Federal Unemployment Tax Act (FUTA)
- Self-Employment Tax (SECA)
- Deposit deadlines
- Penalties
- Trust fund recovery penalty, IRC § 6672
Self-Employment Tax (SECA) is imposed on "net earnings from self employment" (gross income from a trade or business, sole proprietor, or partnership. SECA is imposed on all self employment income if self employment income is over $400 per year (the amount is a trigger, not an amount excluded from tax, so once coverage applies it applies to all self employment income).
For partnerships and limited liability companies, "gross income" subject to SECA includes the distributive share, whether or not distributed.
Rate:
- OASDI – 12.4%
- HI – 2.9%