Self- employed individuals have the perks of being their own boss such as making their own hours and determining what work to take on. On the flip side, they also have the responsibility that comes with operating a business, along with the added expense of self-employment taxes. Which leads to the question of the day...What is self-employment tax anyway? It is comprised of 2 taxes: Social Security Tax - This amount is paid to fund social security. Each American pays 6.2%