1099 Self-Employment Tax & Reserve Rules

Independent contractors, solopreneurs, and single-member LLC owners pay 15.3% Self-Employment Tax (Social Security + Medicare) in addition to federal and state income taxes.

#### Quarterly Payment Deadlines:

#### Tax Set-Aside Rule of Thumb:

Set aside 25% to 30% of net business income into a separate high-yield tax savings account every time a client invoice clears.