2007-11-25 00:50:53 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Your net income from self-employment is the total you take in minus applicable deductible expenses.
You'll pay around 14% of your net income for self-employment tax (social security and medicare), plus whatever income tax you owe to the feds and maybe the state and locals, depending on where you live. That could be another 10-25% or even more, depending on your income and where you live. If you'll post again giving an estimate of what you'll make for the year and where you live, somebody can give you a better answer.
2007-11-25 02:35:46 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
I know this may differ a bit because I'm from Canada, but I just did a huge project on running my own business and I had to calculate everyone's salaries. First off, there are taxes charged to the employee. (In this case, you.) After that, the company will also owe taxes to the government. We got a book called the "DONA" book which helps you in knowing exactly how much you owe off your own pay cheque for things like unemployment insurance, federal taxes provincial taxes, etc... Once you have all those numbers you can then calculate how much your company now owes the government. I suggest you look into seeing if your government has a book like that, and I'm sure that if they do have an entrepreneurship program that they will also give you all the correct calculations for the deductions. (I won't give them to you because I'm sure they are not the same and we don't pay the same things.) I know this was a little vague, but I hope it helped a little.
2007-11-25 01:06:52 · answer #2 · answered by charmie4 1 · 0⤊ 0⤋
It depends upon how much money you make. If you are a self employed individual, you will be responsible for 15.3% of payroll taxes + tax after you take all of your deductions on schedule C of the tax return.
2007-11-25 00:59:48 · answer #3 · answered by R 4 · 1⤊ 0⤋
I am self emplyoed and ususally pay qrtly. estimated taxes of 25%. BUT i also get paid every 2 weeks with taxes taken out.
www.franchisetoown.com
2007-11-25 01:08:56 · answer #4 · answered by Anonymous · 0⤊ 0⤋
about 10% percent of your wages to be safe...that would be about 2000$ if u make 20000 if u can't afford that then at least 1000$ and that's prolly pushing it u culd end up owing if you don't have a lot of expenses with ur self employed job.
2016-04-05 21:26:20 · answer #5 · answered by ? 4 · 0⤊ 0⤋