Social Security and Medicare taxes are imposed on employee wages and self-employment earnings prior to retirement. One half of the tax is. paid by the employer and one half by the employee, with the employer's portion being paid out of the general funds of the business and the
employee's portion being subtracted from her wages. With a self- employed individual, the outcome changes. The totality of the tax
remains the same; however, the self-employed individual assumes responsibility for both halves of the Social Security and Medicare taxes!
The same amount of tax is paid, but it is paid completely by the self- employed individual and not shared between employer and employee.
Addressing Inequities in the Collection of Social Security Taxes for U.S. Citizens Working Abroad,
San Diego L. Rev.
Available at: https://digital.sandiego.edu/sdlr/vol37/iss3/12