Self-Employment Tax

A tax imposed on self-employed people, who must pay this tax in order to receive social-security benefits upon retirement.

Investopedia Says:
The self-employment tax may be reduced if the person also pays social security and Medicare taxes through another employer.

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Provision for Social Security (old-age, survivor's, and disability insurance) and Medicare (hospital insurance) for self-employed individuals. In 1999, the Social Security portion of self-employment tax is 12.4% on net earnings from self-employment up to $72,600, and the Medicare portion is 2.9% on net earnings from self-employment. Estimated self-employment tax must be paid quarterly with estimated income tax.