From: utzoo!decvax!decwrl!amd70!eager
Newsgroups: net.misc
Title: Re: A way to get out of SocSec?!
Article-I.D.: amd70.1380
Posted: Fri Feb  4 17:32:37 1983
Received: Sun Feb  6 01:02:05 1983
References: houti.205


Self employed people must still pay Social Security.  They file a 1040-SE
with their income tax return.  FICA is paid at about 150% of the normal
employee rate (the full employee rate plus half the employer rate).  That 
is something like 9-10%.

Harry Brown's "How I Found Freedom in and Unfree World" is correct in what
it states:  when you hire someone as a contractor you are not obligated to 
pay FICA to the Feds, nor to withhold FICA or income tax.  You have a lot
less headaches & paperwork.  But FICA still gets paid.

Government employees (at the moment) and people covered by the Railroad
Retirement Fund are exempt from SSS.

I have been told that the IRS collects FICA from self-employed persons and
forwards the money and info to the Social Security Administration.  Failure
to file the 1040-SE is not income tax evasion (as I understand it).  The SSA
will follow up in its own good time, if it does indeed follow up.  I file 
my 1040-SE like a good boy, and hate to see that 10% come off the top.

		-- Mike Eager @ AMD