[header] How to pay self employment tax [title] Add up your business revenue. [step] This is any money taken in by your business. Make a note of this amount.
[header] How to pay self employment tax [title] Add up your business revenue. [step] This is any money taken in by your business. Make a note of this amount.
Direct that amount to one or two owners in the business depending on what the circumstances are. If you work for just one person, each owner must have 30% of your revenue. [title] Figure out the total amount of your business related expenses. [step] You will have to report these on a form titled schedule c. This amount, when multiplied together, will net you approximately 2.5% of your gross income. Once you have this figure, transfer your money to a savings account to calculate your taxable net income. [title] Multiply what you take in (itemize this amount) by the number of hours you have worked. [step] This is how long you can take to pay self employment tax.