Self-Employed Social Security Taxes (LO. 2) Eric is a self-employed financial consultant. During 2020, Eric's net self-employment income is $158, 100. The OASDI rate is 6.2%; the MHI rate is 1.45%. Hint: 2020 OASDI cap is $137,700. Note: Round all calculations to the nearest cent. What is Eric's self-employment tax? 21,819.20 x Feedback Check My Work Self-employment tax-Self-employed individuals pay a Social Security tax equal to the sum of the employer's and employee's payments. Because employees are not taxed on the Social Security contribution made on their behalf by their employers, self- employed taxpayers are allowed to deduct one half of their self-employment tax as a business expense to equalize the tax treatments of employees and the self-employed