2006-10-28 06:08:03 · 3 answers · asked by Lady B 2 in Business & Finance ➔ Taxes ➔ United States
cabjr1961 is wrong about the self-employed not paying FICA. it is commonly referred to as self-employment tax in their case. The rate is the same as the 'employee' + 'employer' portions of the 'payroll tax'. As for as direct or indirect, unless this question is for a class, it doesn't matter.
2006-10-28 07:38:57 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
The answer depends on the underlying labor.
If FICA is assessed on direct labor, then FICA and other payroll taxes should be considered a direct cost.
If, however, the FICA is charge against indirect labor (such as warehouse personel) or against G&A labor, then it should maintain that nature.
In most cases, if you cannot breakout the type of labor, FICA and other payroll taxes are considered G&A burden.
2006-10-28 14:52:16 · answer #2 · answered by tax_black_belt 2 · 2⤊ 0⤋
I would say indirect as it is a tax that is not payable unless you are working for your income. Being self employed you dont pay it, nor do you if you are being supporte by your parents.
2006-10-28 13:12:16 · answer #3 · answered by cabjr1961 4 · 0⤊ 2⤋