Whether you're new to freelancing or you've had a sole proprietorship for years, when you own your own business, you take on a whole new assortment of responsibilities when it comes to tax time. One of the most common questions we get from new freelancers is: What is the self employment tax?
The self employment tax (SE tax) is the fee that you pay to the federal government to cover the cost of social security and medicare when you're self employed.
For many people, the self employment tax comes as a surprise, as it's not something you're used to paying when you work for someone else. Unfortunately, there's also a lot of misinformation out there about taxes for freelancers, which is why we're here to help clear the air...
To read more, check out the full post on Freelance Finance.