Self-Employment Tax

  1. New! Community Safety Payroll Tax (CSPT) One-page Flyer and Brochure now available!

    Community Safety Payroll Tax (CSPT) One-page Flyer and Brochure available in the Document Library under “Other Payroll Tax Documents."  

  2. New! 2024 Quarterly Payroll Tax and 2023 Annual Self-Employment Tax Forms now available!  

    The quarterly Employer, Employee and Self-employment tax forms, instructions and vouchers are now available for the 2024 filing(s).

Highlights

  • The Self-Employment Tax captures individual owner contributions based on annual net income from self-employment.
  • Reporting entities subject to the Self-Employment tax are: Sole Proprietors, Partnerships, and LLCs taxed as Sole Proprietors or Partnerships, regardless of whether the business entity has employees.

Calculating Self-Employment Tax

The Guide to Calculating the Self-Employment Tax should be used to understand how to calculate the Self-Employment Payroll Tax.


Tax Rate

The tax rate for self-employment tax is 0.0021 and is applied to annual net earnings from self employment. Net self-employment earnings are generally found on Federal Schedule SE, line 2. The net self-employment earnings on Federal Schedule SE may include earnings reported on Federal Schedule C or C-EZ or Federal Schedule K-1 from Federal Partnership return 1065.  


This is not intended to be tax preparation advice. Please consult your CPA or tax preparer to ensure accurate calculation of annual net earnings.


Reduced Tax Rate for employers with two (2) or less average annual employment

Employers with two (2) or less average annual employees are eligible to claim a reduced tax rate of 0.0015 on the first $100,000 in payroll on both the employer tax and the self-employment tax. See the tax form instructions for how to claim this discounted rate on the 4th quarter return or final return of a closed business that qualifies for the reduced rate.


If a sole proprietor or partnership has no employees, the reduced tax rate is applicable on the first $100,000 of net earnings from self-employment for sole proprietors or each individual partner.

Forms

The following forms are available for reporting the Self-Employment Tax. To avoid a delay in processing, all forms in this section must be submitted together to the City of Eugene at the address listed on the form, with a separate check or money order for each tax form.


Note: We strongly encourage the use of MUNIRevs to ensure accurate and timely filing of the payroll tax returns. Using this online self-service option 

  1. Ensures accurate tax form calculations (including any penalties and interest calculations), 
  2. Allows for secure online check and credit card payments, 
  3. Maintains a record of prior tax filings, and 
  4. Is the main method of communication between the City of Eugene and registrants.

Instructions

Instructions for the Self-Employed Payroll Tax Return is listed below to assist taxpayers in completing and understanding the payroll tax.  Partnerships may file on behalf of all partners or partners in a partnership may file individually.


Filing Due Dates

The Self-Employment Tax Return is due on April 15 for activity from 1/1 to 12/31 of the prior year. If the due date falls on a holiday or weekend, the due date is due on the next business day.

Frequently Asked Questions (FAQs)

Please see the Frequently Asked Questions for an explanation in more detail of the Self-Employment Tax.  


Archived Self-Employed Payroll Tax Forms

Please use the Document Library when filing payroll tax amendments for prior quarters older than the current calendar year