1099 CRNA Institute: Thrive as your own boss-Explanation of the Self Employment Tax

Explanation of the Self Employment Tax

Video Transcription

Video Summary

The video discusses the self-employment tax, which covers Social Security and Medicare for self-employed individuals. It highlights the importance of understanding how the tax works, who needs to pay it, and how to calculate it. The self-employment tax is paid by sole proprietors, LLC owners, partners, and independent contractors receiving a 1099 MISC form. The video explains how S corporations can help save on self-employment taxes by setting a reasonable salary. It also touches on how to pay the tax through Schedule SE on the 1040 form and the importance of estimating quarterly tax payments.

Keywords

self-employment tax

Social Security

Medicare

sole proprietors

S corporations