# Does the employer social security tax also apply on self-employment income for individuals with W2 income that exceeds the IRS maximum?

I have a question very similar to W2 and 1099 (self employed) income in same year: social security taxable income limit?, but goes a step further.

The goal of my question is to estimate how much social security tax would be taken out from a side-hustle while earning income from a W2 that is in excess of the IRS Maximum Taxable Earnings.

Question: If an employee receives both a W2 income in excess of the IRS maximum taxable earnings, and they are also self-employed on the side, would the employer portions of self-employed social security tax still apply on the self-employment income?

For example, imagine someone works a W2 job and makes \$200,000 (in excess of the social security limit). Their employer would withhold 6.2% (up to the same maximum?).

If the same someone also is self-employed and makes \$10,000 through some side gig. This income would also be subject social security tax of 12.4% -- 6.2% for the employee and 6.2% as the employer.

The employees gross wages in this example, as I understand it, is \$210,000 (since the income is "pass-through"). This means that up to the IRS limit (e.g. \$147,000 in 2022) the 6.2% tax would be applied.

However I'm not as clear on how the employer portion works. For the self-employment portion of the income \$10,000, would that also be subject to the additional 6.2% from the "employer" portion of the self-employment income?

Meaning in total with this hypothetical, the total social security taxes owed would be:

• Employee social security: \$147,000 & 6.2% = \$9,114
• Employer social security: \$10,000 & 6.2% = \$620
• Total: \$9,114 + \$620 = \$9,734

Is this correct? Or am I missing something?

Following up on that, does the employer portion of social security also follow the same maximums? (E.g. assume \$200,000 in W2 income but now \$150,000 in self-employment income).

In this new example, would the employer social security portion only apply to the first \$147,000 (2022 IRS limit) of the \$150,000 in self-employment profit?

• What IRS limit are you talking about? Are you referring to the Social Security maximum taxable earnings? Commented Mar 4, 2022 at 4:50
• Yes. Sorry if that wasn't clear. The values described here: ssa.gov/benefits/retirement/planner/maxtax.html. (Edit: updated the post to use the phrase 'maximum taxable earnings' and link to the doc. hopefully it's more clear now. Commented Mar 4, 2022 at 4:53