Im a independant contractor and receive my income from businesses how do you pay into social security?

Answer 1

You file a schedule C as part of your 1040 federal income tax return. You report your receipts and expenses on the Schedule C, and if you have a net profit of at least $400, you will have to pay Self-employment (SE) tax, which is social security & medicare tax. The tax is 15.3% of 92.35% of net Schedule C profit, and you would either pay it on a quarterly basis (the IRS says that you can pay either 90% of current year tax (which you won't know until the current year is over) or 100% (110% for high income persons) of the prior year tax. What this does is eliminate an underpayment penalty. Then, if there is any tax owed above and beyond your quarterly payments you would pay that when you file your federal income tax return. For a self-employed person, which you are, they pay regular income tax and the SE tax. That is how you pay into social security.

If you are lucky enough to make a net profit of more than the social security limit ($94,200 for 2006 and $97,500 for 2007) the SE tax changes from 15.3% to 2.9% on the amount of net profit that exceeds the social security limit (the 2.9% is the medicare tax (both employee and employer portion) which has no earnings limit).

Answer 2

When you file your annual tax return, you'll fill out a schedule C for your income and expenses as a contractor. The net from that will go on a schedule SE to calculate your self-employment tax - that's for social security and medicare. That total will go on your 1040 along with your income tax amount - they'll be added together to get your total tax.

Answer 3

You pay your SS and Medicare taxes when you file your tax return using Schedule C.

If the total tax liability (income tax, SS, Medicare) is more than $1,000, you should send in estimated tax payments quarterly. IRS Pub 505 has the forms

http://www.irs.gov/pub/irs-pdf/p505.pdf

Answer 4

dkarl's right, that's all you need to do. another good source is Publication 17. just call the IRS at 800-829-1040 or go the the website at www.irs.gov.

Answer 5

On your federal tax form 1040, you will also file Schedule SE (Self-Employment Taxes).

It's that simple. You get to pay 12.4% for SS and 2.9% for Medicare. Wahoo!

Answer 6

You register yourself with the relevant authority and get a social security number, and then you instruct your bankers to make a standing order of the required amount on a monthly basis

Answer 7

https://www.eftps.com/eftps/