567. Who must pay the self-employment tax?Nuco Employeercline212014-07-29T19:01:00Z2014-07-29T19:01:00Z1128730UMKC6185714Site Map/General Income Taxation/Individuals/Social Security TaxesTaxFactsDefaultArticle124111442-00-tf2.xml1442.00;#1729;#0x010100C568DB52D9D0A14D9B2FDCC96666E9F2007948130EC3DB064584E219954237AF3900242457EFB8B24247815D688C526CD44D009C4E67E972694125ABDA91AC61F5E51FTax Facts 2Who must pay the self-employment tax?7800.00000000000TaxFactsDefaultArticle2010-01-14T22:11:35ZSBMEDIA\moss-admin567. Who must pay the self-employment tax?An individual whose net earnings from self-employment are $400 or more for the taxable year must pay the self-employment tax.IRC Sec. 6017. In 2014, such an individual must file a Schedule SE and pay Social Security taxes on up to $117,000 of self-employment income ($113,700 for 2013). (The hospital insurance tax is imposed on all of a taxpayer’s self-employment income). However, an above-the-line deduction is permitted for one-half of the self-employment tax paid by an individual and attributable to a trade or business carried on by the individual (not as an employee).IRC Sec. 164(f). If the individual also works in covered employment as an employee, his self-employment income (subject to the self-employment tax) is only the difference, if any, between his “wages” as an employee and the maximum Social Security earnings base.