My FH just started working as an independent contractor we live in Illinois and he works in both Illinois and?

Question

Wisconsin. How much do we need to save out of each dollar for taxes? Also, do we need to pay taxes three times a year? I just dont want to end up owing too much money at the end of the year. In addition, I bought Quicken 2008 home and buisness however, it seems a bit confusing to me. Any suggestions?

Answer 1

I have a canned explanation to apparently clueless independent contractors:

Some employers try to get around paying employment taxes (social security and unemployment) and other employee benefits like workers compensation insurance by improperly classifying employees as independent contractors. The basic issue is the amount of control the employer has over the worker. If you are required to show up for work--personally--at a particular time, punch the clock, use the employer’s equipment and are paid an hourly rate, or another set rate based on time served, you are an employee. If you didn't understand the difference when you posed your question, I would be even more convinced that you are an employee. What is your preference, Slotted or Phillips? Complete an IRS Form SS-8 to get an official ruling on your status. This will help you get unemployment if you get fired. When you file your income tax return, you can attach Form 8919 Uncollected Social Security and Medicare Tax on Wages and only pay the employer's half of social security. You will still have to cough up all the income tax. IRS and the states are stepping up enforcement in this abuse area.

Answer 2

in case you artwork 3 days each and every and a week or fewer and properly checklist this form of days you artwork to NYS unemployment each and every and each week, then you are able to acquire a partial earnings (they shrink it 25% in accordance to day which you artwork in any admire, whether you in basic terms artwork 15 minutes on that day). in case you artwork 4 or greater days or you fail to checklist this form of days on which you artwork, then you shouldn't convey collectively any reward. the larger concerns are which you will by way of no skill acquire a learn for this artwork, and that in case you do acquire a learn, it would desire to be for shrink than the quantity which you have been interior the previous receiving from NYS unemployment. very virtually all people who will exchange into an coverage save attendant without previous journey interior the filed fails at it (extremely over ninety%, in all probability on the factor of a hundred%). with the aid of fails, I propose that they don't make sufficient sales to proceed doing this artwork for distinctive months and flow away the sector indoors a three hundred and sixty 5 days. whether, the enterprise even with the certainty that makes money from in spite of the fact that coverage you, your loved ones, and your persons purchase. You, your loved ones, and your people are regularly your in basic terms clientele, and you (and that they) regularly spend greater then you are paid.

Answer 3

Save around 30% and make four quarterly estimated payments, and he should be ok for the feds. He might also have to make quarterly payments for state taxes.