Self-Employment Tax is a mandatory tax obligation for individuals who work for themselves, including freelancers, independent contractors, gig workers, and small business owners. It covers contributions to Social Security and Medicare, ensuring that self-employed professionals receive the same benefits as traditionally employed workers. Unlike employees who have payroll taxes withheld by their employers, self-employed individuals must calculate, report, and pay their own taxes, typically through quarterly estimated tax payments.

Industries such as logistics, e-commerce, retail, manufacturing, and facility management services (FMS) often engage contract-based professionals, gig workers, and consultants, making it essential to understand self-employment tax obligations. Businesses must ensure proper classification of independent workers to avoid tax penalties, ensure regulatory compliance, and streamline payment structures. By leveraging automated payroll systems and tax management tools, companies can facilitate smooth financial operations, reduce compliance risks, and maintain transparent business relationships.