I will be working for a company that will not be taking any taxes out of my pay. I was wondering what is the percentage of my pay I should put aside to pay the IRS with? I live in NYS.
2006-08-19 03:12:45 · 7 answers · asked by misymagicg 2 in Business & Finance ➔ Taxes ➔ United States
Go to www.paycheckcity.com
2006-08-19 03:21:43 · answer #1 · answered by Coffee Cup 1 · 0⤊ 0⤋
I am going to use Illinois as an example. Fica and Medicare is 7.65%, Illinois Withholding tax is 3.0%, the lions share of the population is at 15% for federal Withholding.
Add those all together and the governments deduct 25.65% from your paycheck.
2006-08-19 03:29:09 · answer #2 · answered by mikeae 6 · 0⤊ 0⤋
Pick up an estimated tax form and instructions. All your answers are there. You will have to pay quarterly. Why is the company not taking taxes out of your pay? Are you an independent contractor? You better read up on the rules at www.irs.gov on what an independent contractor is or you can both get into trouble.
2006-08-19 08:57:09 · answer #3 · answered by Barkley Hound 7 · 0⤊ 0⤋
Remember that in addition to regular taxes you'll also be responsible for self-employment tax which is the 7% social security tax that the employer usually pays.
There are on-line worksheets to help you approximate. 33% is probably a good starting point.
2006-08-19 03:28:16 · answer #4 · answered by Oh Boy! 5 · 0⤊ 0⤋
It depends on your salary - normally between 25% to 40% - this is also based on your number of deductions - the more deductions the less taxes!@
2006-08-19 03:19:53 · answer #5 · answered by nswblue 6 · 0⤊ 0⤋
That depends on two things. First your actual income and second the nubmer of dependants you claim. Try 10-12 % and you should be close.
2006-08-19 03:18:33 · answer #6 · answered by Michael 5 · 0⤊ 0⤋
The federal withholding is about 30%. I donno about state tax.
2006-08-19 03:18:34 · answer #7 · answered by Joe 4 · 0⤊ 0⤋