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Based on U.S. law, it is mandatory that all U.S. citizens serving in the U.S.
pay self-employment tax on their UN earnings. U.S. citizens serving abroad who
spend time on official duty in the U.S. are also subject to self-employment tax
on the earnings for the period worked in the U.S. The tax rate is 12.4% of the
social security wage base for social security plus 2.9% on all wages for
medicare. The social security wage base for 2009 was $106,800 for 2009 and
remains the same for 2010. . The UN will normally reimburse one half
of the self-employment tax due on the UN taxable earnings as calculated on IRS
schedule SE; a U.S. staff member has to pay the other half (latest
tax circular).
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