I have a question, when people work for a company they have taxes taken out of there check especially social security. How do the self employed get social security taxes. Will they get social security when they retire?
2007-01-19 16:53:50 · 4 answers · asked by TNA Ambassador 6 in Business & Finance ➔ Careers & Employment
yes.
2007-01-19 17:01:23 · answer #1 · answered by user name 5 · 1⤊ 0⤋
If you are self employed, you have to estimate your income, and depending on how much it is, pay it monthly or quarterly.
At that time, you have to also pay your social security and medicare taxes. Used to be called FICA.
When you are employed by someone you pay half of the taxes and your employer pays the other half. Usually around 7.65%.
If you are self employed, guess what? You pay it all. THAT'S RIGHT!
When you hear the nonsense about the rich getting richer and the poor getting poorer. Just remember, the wealthy pay significantly more of the tax burden than anyone really wants to admit.
Good Luck.
2007-01-19 17:05:49 · answer #2 · answered by A_Kansan 4 · 0⤊ 0⤋
If you are an employee, the Social Security tax is actually double what is taken out of your paycheck - Your share is paid with after tax dollars - In other words, your income income is subject to both income and social security tax. For example if your salary is $10,000, 7.65% of this sum, or $765 would be taken out of your pay for FICA taxes - but all $10,000 would be subject to income tax. - Your employer would pay the government an additional $765.00 in FICA taxes but it would not be taken out of your $10,000 gross pay and would not be subject to income tax- No mention of it would be made on your end of the year W-2 form. Self employed people pay both the employer's and employee's halves of social security - but an adjustment is made on their income tax returns so that only half is paid with after tax dollars - The idea is to make them pay the same tax as a similarly compensated employee. - But there is one difference: - Because they must write the government a check for both parts of the social security tax, self employed people are particularly aware of how large this tax is.
2007-01-20 18:37:32 · answer #3 · answered by Franklin 5 · 0⤊ 0⤋
if you pay taxes yes
2007-01-19 16:58:55 · answer #4 · answered by lamli 2 · 0⤊ 0⤋