Self-Employment Contribution

Sole Proprietors will be assessed an annual contribution on their earnings.

After an exemption, the Self-Employment Contribution is 2% of Adjusted Net Earnings.

  • The exemption is $15,000 – (Adjusted Net Earnings x 0.25)
  • The exemption would not apply for Net Earnings above $60,000.

Calculation Example

Paul is in business for himself and nets $55,000 per year.

  • Paul’s Self-Employment Contribution
    • $55,000 x .25 = $13,750
    • $15,000 – 13,750 = $1250
    • $50,000 – 1,250 x 2% = $1075/yr or approx. $89/mo

See Page 31 – Section 203.3 of the full bill text for details.