Anyone who is self employed is considered both the employer and the employee, meaning thet New York self employment tax must be paid. That amount is 15.3%, comprising 12.4% for Social Security, old-age, survivors, and disability insurance, and 2.9% for Medicare or hospital insurance.
The New York self-employment tax is calculated in two sections. First, a set amount is established each year against which the 12.4% of Social Security is applied. For 2020, that amount is the first $137,700 of your net earnings. The second amount, the 2.9% Medicare payment, is applied to all your combined net earnings. Variations can occur if you file as a married couples business, or your spouse is your partner or your employee.
New York self employment tax has to be paid and filed in quarterly installments on:
If you do not make payments, you could be fined by the quarterly tax penalty rate.
New York self employment tax can be paid electronically with Form 1040-ES, Estimated Tax for Individuals. You can also use the worksheet in Form 1040-ES to determine your quarterly estimated tax obligations.
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