how is social security and medicare taxed for self employed individuals 
self employed individuals independent contractors sole proprietors etc must pay both halves of social security and medicare taxes the entire 15 3 fica tax it is paid on the net income of their business or the sum of their self employed earnings after expenses and losses are deducted while the social security and medicare tax rate is the same as for employees the self employed can take a deduction for half the amount on their tax returns 21