Earnings subject to self-employment tax
The self-employment tax rate remains 15.3 percent for 2009. However, the amount of earnings subject to self-employment taxes increased. For 2009, the maximum earnings subject to the Social Security portion of self-employment taxes (the 12.4 percent amount) increased to $106,800—up from $102,000 in 2008. Stated differently, persons who received compensation in excess of $106,800 in 2009 pay the combined 15.3 percent tax rate for net self-employment earnings up to $106,800, and only the Medicare tax rate of 2.9 percent on earnings above $106,800.
These rules directly impact ministers, who are considered self-employed for Social Security purposes with respect to their ministerial services. Ministers should take these rules into account in computing their quarterly estimated tax payments.
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