SECA (Self-Employment Contributions Act)

SECA, or the Self-Employment Contributions Act, is a U.S. law that requires self-employed individuals to pay Social Security and Medicare taxes, similar to what employees and employers share. When you work for yourself, you’re responsible for the full amount of these taxes, which fund retirement, disability, and health programs. Under SECA, self-employed workers calculate their taxes using Schedule SE on their tax return and make payments to ensure they’re contributing to these social programs. This law ensures that self-employed individuals build entitlement to Social Security and Medicare benefits, just like traditional employees.