NIL glossary
What is self-employment tax?
Self-employment tax is the Social Security and Medicare tax people who work for themselves pay on their net earnings, generally 15.3%, and it often applies to athletes paid for NIL work as independent contractors.
On this page
In detail
It is generally owed when net self-employment earnings are $400 or more in a year, on top of income tax. Athletes with NIL income may also need to make quarterly estimated tax payments. A tax professional can confirm what applies to you.
See NIL taxes.
Frequently asked questions
What is the self-employment tax rate?
15.3%: 12.4% for Social Security and 2.9% for Medicare, generally on net earnings from self-employment.
Sources
- Topic no. 554, Self-employment tax — Internal Revenue Service
This is general information, not legal advice. NIL rules differ by state, school, association and sport, and they change often. Check the official sources linked on this page and talk with your school's compliance office, your state association or a licensed attorney before you sign anything.