Uriah Vincent Jones - Page 5

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          the Treasury.  See sec. 3102.  The FICA tax has two components,             
          the old age, survivors, and disability insurance portion (OASDI)            
          and the hospital insurance portion.  For the year in issue, the             
          OASDI rate was 6.2 percent for both the employer and employee, a            
          total of 12.4 percent.  The hospital insurance portion was 1.45             
          percent for both the employer and the employee, a total of 2.9              
          percent.  The combined rate of the FICA tax was 15.3 percent for            
          2003.  DBMA did not withhold any FICA tax because it treated                
          petitioner as an independent contractor.                                    
               Independent contractors are not subject to the FICA tax;               
          however, they are subject to a tax under chapter 2 of the Code,             
          the Self-Employment Contributions Act of 1954 (SECA), secs. 1401-           
          1403.  See secs. 1401 and 1402.  The SECA tax is a different tax            
          from the FICA tax, though the SECA tax contains the same two                
          components as the FICA tax.  The SECA rate is equal to the sum of           
          the employer and employee tax rates under FICA.                             
               For the purposes of FICA, an employee is defined as:  (1)              
          any officer of a corporation; (2) any common law employee; (3)              
          any individual in a specified occupation group who is not a                 
          common law employee; and (4) any individual who performs services           
          that are included under an agreement entered into pursuant to the           
          Social Security Act, 42 U.S.C. sec. 218 (2000).  Sec. 3121(d).              

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