self-employment tax

self-employment tax definition - finance
A tax that self-employed people have to pay to cover their Social Security taxes. When people are employed, their employer pays half of the Social Security tax; if a person is self-employed, he or she has to pay the entire amount. The self-employment tax is currently around 15 percent, but is usually adjusted every year.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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