Self-employment Tax Distinction between independent contractor and an employee is important Self-employed individuals are subject to self-employment 回酒a? tax on the amount of net earnings from the self- 州 H APPLE CIDER RR SALE 2 employment TTU 回· Employees who have a small business in addition to regular employment may also be subject to the self- employment taxSelf-employment Tax • Distinction between independent contractor and an employee is important • Self-employed individuals are subject to self-employment tax on the amount of net earnings from the self￾employment • Employees who have a small business in addition to regular employment may also be subject to the self￾employment tax