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.
- OASDI – 12.4%
- HI – 2.9%