When calculating self-employment taxes from a taxpayer who also receives wages from a salaried job,the earnings from self-employment are considered first in calculating the ceiling amount for social security and Medicare.

Question

Quizplus · Accepted Answer

When calculating self-employment taxes, the earnings from a salaried job are considered first towards the Social Security and Medicare ceiling amounts. Self-employment earnings are then added, potentially subject to Medicare taxes if above the threshold, but Social Security taxes may not apply if the salaried job earnings have already reached the Social Security wage base limit.

When Calculating Self-Employment Taxes from a Taxpayer Who Also Receives