Self-Employed Multiplier of 0.9235 for Social Security, Medicare
If you are self-employed, only 92.35% of your earnings are subject to Social Security and Medicare taxes. So if you report $100,000 in income, you will only pay FICA (Federal Insurance Contributions Act) tax on $92,350 of it. This is referred to as the “self-employed multiplier of .9235.” The reason for the multiplier has to…
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