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Self Employment Tax

How the Social Security wage base will affect your payroll taxes in 2026

Leave a Comment / Employees, FICA, Medicare Taxes, Payroll Tax, Self Employment Tax, Social Security, Social Security Tax /

The 2026 Social Security wage base has been released. What’s the tax impact on employees and the self-employed? Let’s take a look. FICA tax 101 The Federal Insurance Contributions Act (FICA) imposes two payroll taxes on wages and self-employment income — one for Old-Age, Survivors, and Disability Insurance, commonly known as the Social Security tax, […]

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Run a business with your spouse? You may encounter unique tax issues

Federal Income Tax, Partnerships, S Corporation, Self Employment Tax, Small Business, Small Business Owners, Sole Proprietors, Tax Savings, Unincorporated Small Business /

Do you and your spouse together operate a profitable unincorporated small business? If so, you face some challenging tax issues. The partnership issue An unincorporated business with your spouse is classified as a partnership for federal income tax purposes, unless you can avoid that treatment. Otherwise, you must file an annual partnership return using Form 1065.

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Lower your self-employment tax bill by switching to an S corporation

Federal Employment Tax, Federal Taxes, Limited Liability Company, Partnerships, S Corporation, Self Employment Tax, Small Business, Small Business Owners, Small Business Tax Tips, Sole Proprietors, Taxes 2025 /

If you own an unincorporated small business, you may be frustrated with high self-employment (SE) tax bills. One way to lower your SE tax liability is to convert your business to an S corporation. SE tax basics Sole proprietorship income, as well as partnership income that flows through to partners (except certain limited partners), is subject

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Self-employment tax: A refresher on how it works

Medicare Taxes, S Corporation, Self Employed, Self Employment Tax, Small Business, Small Business Owners, Social Security Administration /

If you own a growing, unincorporated small business, you may be concerned about high self-employment (SE) tax bills. The SE tax is how Social Security and Medicare taxes are collected from self-employed individuals like you. SE tax basics The maximum 15.3% SE tax rate hits the first $168,600 of your 2024 net SE income. The

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Employers: In 2025, the Social Security wage base is going up

Employees, FICA, Payroll Tax, Self Employment Tax, Small Business, Small Business Owners, Social Security /

As we approach 2025, changes are coming to the Social Security wage base. The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $176,100 for 2025 (up from $168,600 for 2024). Wages and self-employment income above this amount aren’t subject to Social Security tax. If your business

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Social Security tax update: How high can it go?

Self Employed, Self Employment Tax, Social Security, Social Security & Medicare (FICA) taxes /

Employees, self-employed individuals and employers all pay Social Security tax, and the amounts can get bigger every year. And yet, many people don’t fully understand the Social Security tax they pay. If you’re an employee If you’re an employee, your wages are hit with the 12.4% Social Security tax up to the annual wage ceiling.

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Maximize the QBI deduction before it’s gone

LLC, Partnerships, Past-Through Entities, Qualified Business Income Deducton (QBI), Self Employment Tax, Small Business, Small Business Owners, Small Business Tax Tips, Sole Proprietors /

The qualified business income (QBI) deduction is available to eligible businesses through 2025. After that, it’s scheduled to disappear. So if you’re eligible, you want to make the most of the deduction while it’s still on the books because it can potentially be a big tax saver. Deduction basics. The QBI deduction is written off

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9 tax considerations if you’re starting a business as a sole proprietor

Entrepreneurs, Medical Deductions, Quarterly Estimated Tax Payments, Self Employment Tax, Small Business, Small Business Owners, Small Business Tips, Sole Proprietors /

When launching a small business, many entrepreneurs start out as sole proprietors. If you’re launching a venture as a sole proprietorship, you need to understand the tax issues involved. Here are nine considerations: 1. You may qualify for the pass-through deduction. To the extent your business generates qualified business income, you’re currently eligible to claim

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Key 2024 inflation-adjusted tax parameters for small businesses and their owners

Federal Taxes, Inflation, LLC, Ordinary Income Tax, Partnerships, Past-Through Entities, S Corporation, Self Employment Tax, Small Business, Small Business Owners, Small Business Tax Tips, Sole Proprietors /

The IRS recently announced various inflation-adjusted federal income tax amounts. Here’s a rundown of the amounts that are most likely to affect small businesses and their owners. Rates and brackets. If you run your business as a sole proprietorship or pass-through business entity (LLC, partnership or S corporation), the business’s net ordinary income from operations

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The Social Security wage base for employees and self-employed people is increasing in 2024

Employees, Federal Taxes, Medicare Taxes, Self Employed, Self Employment Tax, Social Security, Social Security & Medicare (FICA) taxes, Taxes 2024 /

The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $168,600 for 2024 (up from $160,200 for 2023). Wages and self-employment income above this threshold aren’t subject to Social Security tax. Basic details. The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees, and self-employed

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