Prior to Nov,1, 2003 the per diem rate for meals was 65% of $40 per day.After Nov,1, 2003 the rate increased to 70% of $41 per day.The deductible portion of food or beverage expenses gradually increases for individuals during, or incident to, the period of duty away from home and subject to the hours of service limitations of the Department of Transportation (Â§ 274(n)(3)).fter Nov,1, 2003 the rate increased to 70% of $41 per day. The deductible portion of food or beverage expenses gradually increases for individuals during, or incident to, the period of duty away from home and subject to the hours of service limitations of the Department of Transportation (Â§ 274(n)(3)).
You pay your self-employment tax when you pay the rest of your taxes. Self-employment tax is reported on your Form 1040. You can use Schedule C to figure out your net earnings if you are a sole proprietorship or LLC, or you can use your business tax return to figure your net earnings if you are a S-Corp.
Self employment taxes are comprised of two parts: Social Security and Medicare. You will pay 6.2 percent and your employer will pay Social Security taxes of 6.2 percent on the first $118,500 of your covered wages.You each also pay Medicare taxes of 1.45 percent on all your wages-no limit.If you are self-employed, your Social Security tax rate is 12.4 percent and your Medicare tax is 2.9 percent on those same amounts of earnings but you are able to deduct the employer portion.f you are self-employed, your Social Security tax rate is 12.4 percent and your Medicare tax is 2.9 percent on those same amounts of earnings but you are able to deduct the employer portion.