What You Need to Know About Michigan Self-Employment Tax in 2020
1. How much is the self employment tax for Michigan?
Michigan self employment tax is an amount paid to cover Social Security and Medicare, to a total of 15.3%. Social Security is 12.4% and Medicare is 2.9%.
2. How much do I owe in self employment tax to the government?
Michigan self employment tax is also calculated separately for the two payments. The Social Security amount is applied to a set amount every year, and for 2020, the 12.4% will be applied to the first $137,700 of your net earnings. The 2.9% Medicare amount is applied to all your combined net earnings. If you operate a married couples business, tax requirements may vary.
3. When do I have to pay taxes?
When you work for an employer, they withhold taxes from your cheques. When you’re the boss, you’re required to pay Michigan self employment tax on a quarterly basis. Estimated tax payments must be made on:
- April 15th
- June 15th
- September 15th
- January 15th
4. What forms do I need to file taxes?
Payments can be made electronically with Form 1040-ES, Estimated Tax for Individuals. Use the worksheet in Form 1040-ES to find out if you are required to file quarterly estimated tax.