Self-employed individuals must pay a FICA rate that is twice as much as a factory worker has to? (Financing OASDI and Medicare Programs)

Question

Quizplus · Accepted Answer

Self-employed individuals are responsible for paying the entire FICA tax, which includes both the Social Security and Medicare taxes, on their own. This means the current rate is 15.3% of their net earnings, which is indeed twice as much as what a factory worker has to pay. Factory workers typically have their FICA taxes split evenly between themselves and their employer, with each party responsible for paying 7.65%.

Self-Employed Individuals Must Pay a FICA Rate That Is Twice