How do I go about filing social security taxes for my small business? I am self employed.

Question: I am self employed and I guess I need to file social security tax. This is my first time with this process because I just started my business, so I’m not really sure exactly when to file social security tax or how this works.

Response: Everyone, both those who work for an employer and those who are self employed, has to pay social security tax. When you work for someone else, your employer automatically deducts a portion of your social security tax from your paycheck. When you work for yourself, you are responsible for paying the entire amount of your social security tax. It is your responsibility to report your earnings when you file your regular federal income tax return. If your net earnings from self employment income meet or exceed $400 per year, you also need to report your social security earnings on Schedule SE when you file your taxes. Failure to file and pay social security tax can result in monetary and legal penalties. If you are uncertain about your obligations, you should consult with a qualified social security attorney or an accountant who can help you determine your responsibilities.

Answered by Christy Rakoczy

Additional Resources: Social Security Taxes

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