The part of FLSA that provides for social security benefits for self-employed persons is called _____________.

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The part of the Fair Labor Standards Act (FLSA) that addresses social security benefits for self-employed individuals is known as SECA, which stands for the Self-Employed Contributions Act. Under SECA, self-employed individuals are required to pay self-employment taxes that fund Social Security and Medicare. This provision recognizes that self-employed persons contribute to these systems similarly to employees, who pay FICA taxes (Federal Insurance Contributions Act) deducted from their wages.

Unlike FICA, which applies to wages earned by employees, SECA specifically applies to the net earnings of self-employed individuals. This ensures that those who are self-employed are also contributing to the federal social security system, gaining access to benefits such as retirement, disability, and Medicare, just like employees covered under FICA. Understanding SECA is crucial for self-employed persons to ensure they accurately calculate their contributions and understand their eligibility for benefits.

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