emma-me: Taxes…….?
I do not have taxes taken out of my paycheck because I technically work for myself. About what’s the percantage that I’m going to have to pay for taxes? I get paid around 17 an hour and work about 40-45 per week, and I’ve had this job since June. Thanks.
Answers and Views:
Answer by Gregory E
$ 17 per hour * 43 avg hours per week * 24 weeks = roughly $ 18000.
If that’s the entire amount of money your earned for the year, you fall within the 15% income tax bracket.
Additionally, you might have to pay state or city income taxes, plus Medicare/Medicaid, Social Security, unemployment, etc.
To be conservative, you should put aside around 25% of your income.
Answer by wartzI have a canned explanation to apparently clueless independent contractors:
Some employers try to get around paying employment taxes (social security and unemployment) and other employee benefits like workers compensation insurance by improperly classifying employees as independent contractors. The basic issue is the amount of control the employer has over the worker. If you are required to show up for work–personally–at a particular time, punch the clock, use the employer’s equipment and are paid an hourly rate, or another set rate based on time served, you are an employee. If you didn’t understand the difference when you posed your question, I would be even more convinced that you are an employee. What is your preference, Slotted or Phillips? Complete an IRS Form SS-8 to get an official ruling on your status. This will help you get unemployment if you get fired. When you file your income tax return, you can attach Form 8919 Uncollected Social Security and Medicare Tax on Wages and only pay the employee’s half of social security. You will still have to cough up all the income tax. IRS and the states are stepping up enforcement in this abuse area.
You can use the Form 1040-ES to EStimate what you will owe.
Answer by aadamsdaIf you work for yourself you are self employed and you must file as such.
You should obtain a tin (form ss-5) or an ein (form ss-4) though it is not a requirement when you file ss-4 for an ein you will automatically be enrolled in the EFTPS. EFTPS is a system used to pay the government so you don’t have a huge lump sum due at the end of the year.
Don’t go off what someone in here tells you either go to IRS.gov or into a local IRS branch. you can also call me and I would be able to set up a conference call with a Federal Taxpayer Resolution Representative.
If you would like to speak with a live person E-mail me at [email protected]
To find an office near you here is the IRS website
https://www.irs.gov/uac/Contact-Your-Local-IRS-Office-1
This will bring you to a map, just pick your state and it will bring up a list along with contact numbers. but you will most likely not get a live person.
If you find an office close enough than I would recomend going in where they will be able to give you the forms and lots of information.
If there is not an office close to you I can give you some numbers. I cannot give out certain numbers but I would be happy to set up the conference call for you.
As far as your state taxes you will have to go into the local courthouse or the SOS website.
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