What You Need to Know About Pennsylvania Self-Employment Tax in 2020
1. How much is the self employment tax for Pennsylvania?
Anyone who is a sole proprietor, business owner or is self-employed has to pay Pennsylvania self employment tax, which is actually a Social Security and Medicare tax. The Pennsylvania self employment tax provides 12.4% to Social Security and 2.9% to Medicare, for a total of 15.3%.
2. How much do I owe in self employment tax to the government?
The Pennsylvania self employment tax is forecasted using two calculations. The Social Security payment is 12.4% applied against a predetermined base amount, which in 2020 is the first $137,700 of your earnings. The Medicare payment is 2.9% applied against all your combined net earnings. Then if you happen to run a business with your spouse, or your spouse works for you, there may be requirements to pay the Pennsylvania self employment tax on their behalf.
3. When do I have to pay taxes?
The payments toward Pennsylvania self employment tax must be made on a quarterly basis:
- April 15th
- June 15th
- September 15th
- January 15th
If you don’t follow the payment schedule, you could be subject to a penalty.
4. What forms do I need to file taxes?
Form 1040-ES, Estimated Tax for Individuals, is used to make Pennsylvania self employment tax payments. There is also a worksheet for forecasting your quarterly estimated tax obligations.