What You Need to Know About Minnesota Self-Employment Tax in 2020
1. How much is the self employment tax for Minnesota?
Anyone who has their own business is obligated to pay Minnesota self employment tax, which covers Social Security and Medicare. The total Minnesota self employment tax is 15.3%, divided into a Social Security amount of 12.4% and a Medicare amount of 2.9%.
2. How much do I owe in self employment tax to the government?
If you have to pay Minnesota self employment tax, there are two calculations. The first is the 12.4% of Social Security applied against a set amount, which for 2020 will be the first $137,700 of your net earnings. The second is the 2.9% of Medicare, which is applied to all your combined net earnings. If you have a family business with your spouse, or your spouse works for you, there are some different requirements.
3. When do I have to pay taxes?
The Minnesota self employment tax must be paid quarterly. A worksheet on the form will help you determine if you are required to file quarterly estimated tax on:
- April 15th
- June 15th
- September 15th
- January 15th
4. What forms do I need to file taxes?
The Minnesota self employment tax form is Form 1040-ES, Estimated Tax for Individuals. You’ll need your previous year’s return or an estimate of your annual earnings.