[Red Jones]

I don't know how it works, but when I work as an employee at a lower wage through a consulting agency I have taxes with-held and the tax rates are higher. But when I work as a consultant and am paid direct and a much higher rate, not through an agency, then I don't have it withheld and the tax rates end up being a lot lower. Come to think of it I know my tax consultant does take some money for social security tax, but it ends up being very low compared to what it would've been if it was a regular paycheck with the standard payroll taxes.

[VRWC_minion]

but it ends up being very low compared to what it would've been if it was a regular paycheck with the standard payroll taxes.

Your SE tax is designed to be exactly the same as your payroll tax. In fact as a self employed you pay for both the employer and employee portions.

If you have in the past gotten paid as employee and as self employed your employee W/H was probbaly enough to cover your extra SE tax. However if in a year you mostly get self-employed income and you are not setting aside another 15% your going to get a big surprise.