Stupid question, I suppose, but I don't know that much about the tax law.
If someone works as an I.C., filing out a W-9, and received a 1099, does one pay into the SS system on his income taxes?
Is it required, or is it optional?
2007-07-02 07:42:38 · 5 answers · asked by chieromancer 6 in Business & Finance ➔ Taxes ➔ United States
Not only can, but must - not optional, it's required. You'll fill out a schedule C showing your i.c. income and associated deductible expenses, and calculate your net income. That amount will transfer to a schedule SE, to calculate self-employment income - that's for social security and medicare. The numbers from both schedules will then transfer to your 1040.
2007-07-02 07:51:40 · answer #1 · answered by Judy 7 · 3⤊ 0⤋
Social Security Independent Contractor
2016-10-19 02:28:16 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Yes! If you have a regular job, you pay half your contribution and your employer pays the other half. If you are an I.C., you pay BOTH halves. It can equal more than your fed. income tax!
2007-07-02 07:46:15 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Mr. Knowitall's answer is dead on. As in IC, you have the joy of paying the "employer's" portion and the "employee's" portion. That's because you are wearing both hats. It's called the self-employment tax, and you can read about it at the IRS website.
http://www.irs.gov/businesses/small/article/0,,id=98846,00.html
2007-07-02 07:51:38 · answer #4 · answered by Bill B 4 · 1⤊ 1⤋
what is the total % of salary that must be paid by an iindependent contractor
2016-01-01 01:41:54 · answer #5 · answered by Bruce 1 · 0⤊ 0⤋