Holly wrote:

- quote -

No. The social security component has a cap, but the
medicate component does not. Therefore, the sum of these
items, FICA for employees, or SE tax for the self-employed,
does not have a cap.

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Gene E. Utterback, EA wrote:

- quote -

And you can only claim a credit for YOUR share -- the
employers do not get any credit (or credits).

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sloops[at]comcast.net (Holly) wrote:

- quote -

When you complete Schedule SE you will find that already
meeting maximum on salary precludes paying any SE taxes for
SS, but you do pay for Medicare..

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sloops[at]comcast.net (Holly) wrote:

- quote -

The self employment tax consists of Social Security tax
(12.4%) and Medicare tax (2.9%). There is no maximum amount
(wages or SE earnings) for the Medicare tax, so you would
still pay 2.9% of your SE income. Long form Schedule SE
handles the computations, when you have reached the maximum
SS tax on wages.

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"Holly" <sloops[at]comcast.net> wrote:

- quote -

IN your case, you would only pay the Medicare tax of 2.9% on
the self employment income. Once you hit the OASDI cap YOU
don't have to pay OASDI anymore, but there is no cap on
Medicare.

Interestingly, if you worked 2 jobs - instead of having one
job and one self employment gig - your employers would be
required to withhold on each independently of the other.
Then when you filed your return you would claim a credit for
the excess withholding.

Gene E. Utterback, EA

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Holly wrote:

- quote -

You do the calculation on page 2 (Long Form SE) of IRS Form
1040 Schedule SE. This schedule accounts for the $87,000
limit.

--

Alan
http://taxtopics.net

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Is there a cap on total FICA and Self employment Tax
combined?

Example: Let's say you make $100k from your employer in
which case you hit the max FICA tax. Let's say you make an
additional $10k via self employment. Would you still pay
the 15.3% self employment tax, even though you met your max
FICA via an employer for the year? Or are the totals
seperate?

Thanks in advance

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