Payroll taxes are shared by traditional employees and their employers. Alternatively, if you are self-employed, which includes gig workers or those with a side hustle, you have to pay the employer’s portion as well as the employee’s portion. These taxes are then called Self-Employment Contributions Act (SECA) taxes, which are taxed at the rates shown below:
In addition to a full-time job at Swifty Car Wash, Dynasti also has a side-gig selling elaborate, expensive birthday cakes to customers within a 50-mile radius of her home. She’s using her profits to pay down law school loans more quickly.