Independent Contractor?

Question

I just became an independent contractor and need to know the first steps. I've read that I need to pay quarterly taxes but how?

I've already read www.irs.gov 12 times, I'm looking for additional information. Any tips?

Any and all taxes that I will have to pay in the state of CA. Including my SS and self-employment.

You knw - TAXES!!!

Answer 1

What kind of quarterly taxes are you talking about? Federal or State or both? Personal income tax quarterly? Payroll tax quarterly? Sales/use taxes? Need more information to give you a proper answer.

Answer 2

You only need to worry about paying quarterly taxes if you are planning on making a significant amount of money because your expenses and business cost should be able to bring it down. Get a good CPA!!! They can help you figure out if you should pay quarterly and how much. Also they can give you tips on how to claim expenses to decrease your tax liability.

Answer 3

You'll owe 15.3% of your net income for self-employment tax for social security and medicare, in addition to whatever income taxes you owe to the feds and state - those would depend on your total income.

Net income from self-employment is the amount you take in, minus any associated deductible expenses.

You need to file quarterly estimates - you'll use form 1040ES for that, and send in the tax for that quarter's income. You can download 1040ES and instructions at irs.gov

Answer 4

You may need to be licensed in your jurisdiction, both at the State and Local levels. I highly advise discussing this topic with both your CPA and your attorney.

Quarterly employment taxes are paid on Form 941 and adjusted at year end. Also, you will need to file a quarterly State return and remit payment on that, as well. Further, you have Unemployment Insurance (State & Federal), Worker's Compensation Insurance, etc.

It will cost you less, in the short-term, to hire professionals to handle these things for you, rather than the interest and penalties on being late or otherwise missing a payment on one of these items.

Good luck!

Answer 5

Just dont pay