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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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