The combined 15.3% Social Security and Medicare tax paid by self-employed individuals.
Self-employment tax is the equivalent of FICA for people who work for themselves. Since self-employed individuals are both the employer AND employee, they pay both halves of FICA — 12.4% for Social Security and 2.9% for Medicare, totaling 15.3%. However, you can deduct the employer-equivalent portion (7.65%) on your personal tax return. This tax applies to net self-employment income of $400 or more.
On a typical US paystub, self-employment tax (se tax) information appears in one of three sections — the earnings summary, the deductions list, or the year-to-date (YTD) totals — depending on the type of item. Understanding where to find it helps you verify accuracy, catch payroll errors, and prepare for tax season or loan applications.
Whether you receive a digital paystub through your employer's payroll system (such as ADP, Gusto, QuickBooks Payroll, or Paychex) or a traditional paper stub, the information for self-employment tax (se tax) is required by federal labor law to be itemized and accurate. The Fair Labor Standards Act (FLSA) and state-specific wage transparency laws mandate that employees can review and verify each line of their paystub.
Accurate knowledge of self-employment tax (se tax) is essential for several real-world scenarios common to US workers: when applying for an apartment rental (landlords typically require recent paystubs as proof of income), when applying for a car loan or mortgage (lenders verify gross and net pay across multiple paystubs), when filing your annual tax return (IRS Form 1040 reconciles to your year-to-date W-2 or 1099 totals), and when changing jobs (you may need to provide last paystubs to your new employer for benefits eligibility verification).
If you spot an error related to self-employment tax (se tax) on your paystub, US labor law requires your employer to investigate and correct the issue. The American Payroll Association reports that nearly 75% of US workers will experience at least one payroll error during their career, which is why understanding each line item — including self-employment tax (se tax) — is one of the most valuable financial literacy skills you can develop.