We don't answer individual legal questions or give lawyer referrals. Download after purchase. The Ugly Unfortunately, the bad aspects of self-employment discussed above do not end this litany of woes. Being self-employed can get downright ugly. For many, the ugliest and most unfair thing about being self-employed is that they must pay twice as much Social Security and Medicare taxes as employees.
Employers pay a matching amount.
This is in addition to federal and state income taxes. It is possible, however, to avoid paying at least part of this Social Security tax burden by incorporating your business. Personal Liability for Debts Employees are not liable for the debts incurred by their employers. An employee may lose his or her job when the employer's business fails, but will owe nothing to the employer's creditors. This is not necessarily the case when you're self-employed.