SECA
Business & Finance abbreviation · Tax
| Stands for | Self-Employment Contributions Act tax |
|---|---|
| Categories | Business & Finance |
SECA stands for Self-Employment Contributions Act tax, a tax abbreviation.
Social Security and Medicare tax paid by self-employed people at a combined 15.3%, covering both the employee and employer shares, on 92.35% of net self-employment earnings. It is calculated on Schedule SE.
Example: My Schedule C profit was only $40,000, but SECA tax still added more than $5,600.
Usage notes
Usually just called "self-employment tax." Half of it is deductible as an adjustment to income, mirroring the employer's deduction for its share of FICA. It applies once net earnings reach $400, even when no income tax is due.
Related abbreviations
More tax abbreviations
- QSBS – Qualified small business stock
- QSS – Qualifying surviving spouse
- QST – Quebec sales tax
- SALT – State and local taxes
- SDI – State disability insurance
- SDLT – Stamp Duty Land Tax
- SIT – State income tax
- SS-4 – Application for Employer Identification Number (IRS Form SS-4)
- SSA-1099 – Social Security Benefit Statement (Form SSA-1099)
- SUTA – State Unemployment Tax Act
- TDS – Tax deducted at source
- TFN – Tax file number