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What is the self employment tax in California?
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Self-employment tax is only a Federal tax--it is your contribution to Social Security and Medicare (if you were employed by another company, you would contribute half (7.65% of your wages, up to a limit) and the employer would contribute the other half. When you are self-employed, you pay both halves (although your "company" portion is a deduction against your overall taxable income). States do not charges self-employment tax, although in the case of California, you may be able to opt-in to their state disability program and unemployment.Leave a Comment 19 weeks ago