Self-Employment Tax vs. W-2 FICA Calculator
Freelancers pay both halves of FICA (15.3%) while W-2 employees pay only half (7.65%). This calculator shows the exact dollar difference — and why freelancers need to earn more to match the same take-home.
Self Employment Tax vs. W-2 FICA Comparison
See the real difference between self employment and employee payroll taxes
Self Employment (You pay both halves)
W-2 Employee (You pay 7.65%, employer pays 7.65%)
Self employed individuals pay both the employer and employee portions of FICA taxes (15.3% total on 92.35% of net SE income). W-2 employees only pay 7.65% — the employer pays the other half. Social Security cap: $184,500. Additional Medicare Tax of 0.9% applies above $200,000 for single filers. The employer portion of FICA is not a tax deduction you can take.
Frequently Asked Questions
Why do freelancers pay more FICA than employees?+
Employees split FICA: 7.65% from your paycheck + 7.65% from your employer. Freelancers pay BOTH halves — 15.3% total — because there's no employer to share the cost. The 92.35% adjustment and SE tax deduction help, but you still pay significantly more.
How much more does a freelancer pay in FICA vs an employee?+
On $100,000 of income: an employee pays $7,650 (7.65%). A freelancer pays $14,130 (15.3% on 92.35%). That's $6,480 more — even before income taxes. This calculator shows the exact difference for your income level.
Can freelancers reduce their self-employment tax?+
Yes. (1) Deduct 50% of SE tax from gross income. (2) Form an S-Corp to pay FICA only on a reasonable salary, not all income. (3) Maximize business deductions to lower net SE income. (4) Contribute to retirement plans to reduce taxable income.
Why do freelancers pay more FICA than employees?
Employees split FICA: 7.65% from your paycheck + 7.65% from your employer. Freelancers pay BOTH halves — 15.3% total — because there's no employer to share the cost. The 92.35% adjustment and SE tax deduction help, but you still pay significantly more.