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Why do you pay 30 percent in self-employment tax but when you were employed by a company you only paid 16 percent?
Tax Answer Self-employmened people have to pay basically double of what a "regular" employee would pay. Here's why: When you work for someone else, the company pays half of the social security, etc. taxes. However, when you work for yourself, you are essentially the employee AND the employer; thus, the 30% income tax. It truly isn't fair, especially for small businesses or independent contractors, but that's the tax law. Right idea...the self emplployment tax means you pay the tax the employer normally would. That is the 7.65% of the total 15.30% FICA, etc. that the employer would pay. So where the percentages your coming up with are derived I have no idea. True, there are different caps on amounts that are FICA, etc., taxable....and different considerations about what is taxable income (401K contributions, etc.), so you can't just take your total earnings and divide by your FICA contribution, but even so, for most people it still should be close to that 15% ---- And I absolutely believe this is a fair rule...the tax is 15.30 for SS/FICA and the health component on the applicable earnings, maxed at around 93K of earnings....it is an insurance benefit covering the worker - should the premium make any difference if it's split between employee and an employer or just by the self employed person? Each gets the same benefit paid to them at the end - or perhaps the self employed only deserve half of the normal social security paynebts on retirement? Are you suggesting one should have to contribute less...because they work for themselves? These frequently are the same people with no retirement plan of their own...(everything back into the business), except for the earnings from it they skim. Note self employeds normally don't have to pay, (or have paid for them by the employer - which as part of payroll expense just means the employer gives the employee less to compensate), Unemployment and other things like that, so they still pay less than employees. BUT REMEMBER SELF EMPLOYMENT TAX IS 7.65%....anything else requires a review.
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How much would Sherman pay if he bought shoes for 20 a shirt for 31 and a tie for 23 and paid a 6 percent sales tax?
30 dollars plus 9.5 percent tax = 32.85
Approx. 95% of all tax is paid by those in the top 3% of income. Almost 50% of the people pay not ax at all, and of them a large percent actually get more money bac…k than they paid through credits
Shamrock Dogfood Company has consistantly paid out 40 percent of its earnings in dividends The company's return on equity is 16 percent What would you estimate as its dividend growth rate?
We know that, g = br Here, g = growth rate b = retention ratio = (1- dividend pay-out ratio) = (1 - .40) = .60 r = return on equity = .16 So, g = .60 x .16 = .096 or 9.6% (…ans)
Here's how you solve this: translate the question into math terms. "what" is an unknown value, so make it x, a variable. "is" is =. you convert 30% (30 out of 100) into a dec…imal, which is .3 out of 1. in math, "of" always means multiplying. so what is 30 percent of 16 means x=.3x16 all you have to do is multiply .3 by 16 to get the answer it's 4.8
Emily earns 40000 a year She pays 30 percent tax every year on her annual earnings How much money does she pay in tax?
40000 X .30 = 12000
The winnings are taxed like any other income and therefore it depends on your own personal situation...as no 2 people, even with the same income, would likely pay the sa…me tax. It depends on many, many things...not the least of which is what you consider tax. Many people group all their withholdings as a type of tax, but many may not be. Workers Comp, Unemployment, even FICA are all really more an insurance payment than a withholding against an income tax. Some vary not just by State, but by company...or job in the company. The amount (or percentage) of income tax withheld also depends on many other things...obviously which state (or even city) your in (although that may be a surprisingly small variable), the amount of income your projected on earning over the year (because that helps determine your tax bracket and the percent that may be needed), as well as your filing status, number of dependents and other deductions. And other possible income. And some things are taken out as a straight percentage up to a certain amount of income being earned in a year, and then stop (like FICA). All these things can be adjusted for your circumstances by properly and completely filling out (or changing) the Form W-4 all employers ask you to. Understand that the definition of income changes with each application...your income from your employer is one thing, but the taxable income is different for the IRS, the State, and each other. Finally, there are a number of different legal ways for the payroll provider to calculate certain aspects of the amount to withhold...but overall they make only a small difference. Remember, anything withheld is just being done as an estimated installment payment toward whatever tax, if any, you do ultimately owe. If too much is withheld, it is refunded. (Too little, and you could pay a penalty). Again, adjusting your W-4 is the way to correct for any of these circumstances.
30% of 30% = 0.09 or 9%
Because self employed people are not eligible for unemployment compensation, if you are the sole employee in your business you would not be liable for the unemployment tax.
What is the accounting double entry when a company declare or pay dividend to its holding overseas company with 10 percent local withholding tax rate?
Let's say the dividend payable is $110. When the dividend is declared (eg the decision is made to pay a dividend but the dividend and tax won't be paid until, say, the… first day of next month) then the entry is: Debit "Dividends Expense" (Expense Account) $110 Credit "Dividend Payable Parent Company" (Liability Account) $100 Credit "Dividend Tax Withheld" (Liability Account) $ 10 When the dividend and Tax is actually paid (eg it is now the first day of next month) the entry is: Debit "Dividend Payable Parent Company" (Liability Account) $100 Debit "Dividend Tax Withheld" (Liability Account) $ 10 Credit "Bank Account" (Asset Account) $110
Self-employment income does qualify as earned income for the credit. If you have children, the EIC is often more than the self-employent tax you owe. This year, it can a…lso qualify you for the Stimulus money.
I may be wrong on this but - I do not think that a company that is legally registered as a "corporation" can be considered a solely-owned entreprise. Therefore - the owner can…not be "self-employed." Even privately-held corporations must have a certain number of 'officers' in order to satisfy the state's laws of incorporation.
Can you deduct lost wages on your taxes due to an on the job accident and workers comp only paid you 60 percent of your normal pay?
No. You cannot deduct lost income when you never claim the actual income in the first place. You are only taxed on the amount of taxable income that you received. The reas…on that Worker's Compensation pays you at this level is that you are not paying income taxes, state taxes, social security taxes nor medicare taxes on this income.
Self-Employed people have to pay income tax just like everyone else, plus self-employment taxes which are basically Social Security and Medicare taxes. A self-employed per…son will have to pay all of the Social Security and Medicare taxes since they don't have an employer. When you work for someone, the employer pays for half of the Social Security and Medicare taxes in addition to other taxes like federal and state unemployment taxes and other items depending on the state and city you are located in.