Is it mandatory that Social Security is Paid when filling a 1099?

Question

I am paying in to Federal from a 1099 is it mandatory that Social Security Taxes are paid?

It is a 1099 misc form.

Answer 1

That depends upon the source of the funds reported on the Form 1099. If it's a 1099-INT or 1099-DIV, no SS taxes are due. If it's a 1099-MISC and is marked as "non-employee compensation" then SS taxes are due.

All earned income from employment -- either as an employee subject to withholding or as a self-employed individual -- is subject to Social Security and Medicare taxes.

Answer 2

Social Security is not paid when a 1099 is filed.

First off, a 1099 to be filed is the company's responsibility, not the individual whom the monies are paid to (independent contractor).

It is the reponsibility of the recipient of the monies to pay Social Security tax
(self-employment) throughout the year, usually by quarterly estimate - for personal services rendered or performed.

If a 1099 other than 1099-MIsc is issued to you, more than likely it is not subject to self-employment tax.

Answer 3

If it's self-employment income on a 1099-MISC, social security taxes are due on the net income, not the gross. In other words, you get to deduct all your business-related expenses, such as mileage, supplies, business meals, telephone, equipment such as computers or tools, and possibly a portion of your home expense if you work from home. You're only taxed on the profit.

Be sure and keep records of these expenses, because they will reduce the amount you have to pay!

The only exception to the social security tax on self-employment earnings that I'm aware of is for members of religions that are conscientious objectors. But if you don;t pay in, you don't collect later.