how to find how to pay taxes for a self employed business
Self employment taxes are comprised of two parts: Social Security and Medicare. You will pay 6.2 percent and your employer will pay Social Security taxes of 6.2 percent on the first $127,200 of your covered wages. You each also pay Medicare taxes of 1.45 percent on all your wages - no limit. If you are self-employed, your Social Security tax rate is 12.4 percent and your Medicare tax is 2.9 percent on those same amounts of earnings but you are able to deduct the employer portion.
Self Assessment tax returns. If your financial affairs are more complex (for example youâre self-employed or have a high income) you may pay Income Tax and National Insurance through Self Assessment. Youâll need to fill in a tax return every year.