When a taxpayer has both W-2 wages and income from self employment, he will only pay FICA taxes on his total earnings up to the annual maximum which is $106,800 for the year 2009.
You will see how this works if you refer to Schedule SE. On line 7 of Schedule SE it shows the yearly limit of $106,800. One line 8d you then report your W-2 wages and subtract that amount from the limit. The balance is then the maximum amount of self employment earnings that you would continue to pay FICA on.
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