law, it is mandatory that all
citizens serving in the
pay self-employment tax on their UN earnings.
citizens serving abroad who spend time on official duty in the
are also subject to self-employment tax on the earnings for the period worked
The tax rate is 12.4% of the social security wage base plus 2.9% on all wages
for Medicare. The social security wage base for 2013 was $113,700 and will
be increased to $117,000 for 2014. The UN will reimburse the employer portion
of the self-employment tax due on the UN taxable earnings as calculated on IRS
schedule SE; a
staff member has to pay the balance.
The U.N. will pay 6.2% of the Social Security Wage as Social Security
Tax and 1.45% of the Medicare Wage as Medicare tax. The
staff member will pay 6.2% of the Social Security Wage as Social Security Tax and 1.45% of the Medicare Wage as Medicare
(latest tax circular) plus any other additional medicare tax as applicable for high salaried staff members.