Definition from Nolo’s Plain-English Law Dictionary
Social Security and Medicare taxes on net self-employment income that is a percentage of an individual's earned income up to a certain limit (called the Social Security Wage Base) that increases each year, and then a lower percentage of wages without limit. The tax is reported on Schedule SE of the individual's income tax return.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:24 pm