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Self-Employment Contributions Act (SECA)

Self-Employment Contributions Act (SECA) definition - business

Self-Employment Contributions Act (SECA)

Federal legislation passed in 1954 that requires owners of small businesses such as S corporations and partnerships to pay the full premiums for Social Security and Medicare. SECA taxes are calculated as a percentage of net income from self-employment, and half the SECA payment is deductible in calculating federal income taxes.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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