In Georgia, individuals operating their own businesses or working as independent contractors are subject to specific levies encompassing both Social Security and Medicare contributions, similar to the federal self-employment tax. These combined levies function similarly to the taxes withheld from employees’ wages, ensuring access to crucial social safety net programs. For example, a freelance graphic designer operating in Georgia would need to calculate and remit these contributions quarterly.
Compliance with these state-level requirements is essential for business legitimacy and future access to benefits. These contributions fund vital social programs, including retirement, disability, and healthcare benefits, safeguarding financial stability for the self-employed. Historically, these programs have evolved to provide comprehensive support, reflecting the growing recognition of the unique needs of independent workers within the broader economy.