what is oasdi deduction on paycheck
For self-employed individuals, the effective OASDI tax is 12.4%, because those who are self-employed have to pay both the employee and employer portions of the OASDI tax themselves. An income tax deduction for the employer portion of the self-employment OASDI tax is allowed in order to put self-employed individuals in the same tax position that employers enjoy. Image source: Getty Images.