Statistics from the Internal Revenue Service (IRS) show that the tendency to be self-employed increases with income. IRS data inform our understanding of self-employment because individual income tax filings reveal which taxpayers took the self-employment tax deduction, and which did not. Federal Insurance Contribution Act (FICA) taxes take 15.3 percent of workers’ pay to fund social security and Medicare, with half of these taxes paid by employers and half by employees. (In tax year 2013, high income earners have to pay an additional 0.9 percent Medicare tax).
Image: http://www.freedigitalphotos.net
To read the original article: Higher Earners are more likely to be Self-Employed
