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Tax implications for being paid on a 1099 (All Inclusive) basis
What are the tax implications for being paid on a 1099 (All Inclusive) basis?
Does this mean that I as the employee will have to pay both my share as well as the employer's share of the social security tax?
Are there any other additional or higher taxes that have to be paid by me while being paid on a 1099 basis as opposed to a W2 basis?
Does this mean that I as the employee will have to pay both my share as well as the employer's share of the social security tax?
Are there any other additional or higher taxes that have to be paid by me while being paid on a 1099 basis as opposed to a W2 basis?
If you are self-employed, you have to pay both shares (employer and employee). I have to do that myself here as well.
You pay all the taxes. Including the fix a and social security. Note if it's over a certain amount per quarter you need to make those quietly payments as you go.
That should be FICA not fix. Sorry, fat fingers, skinny phone that thinks it's smarter than me.
It's all on you. But then, so are all the deductions for related business expenses. I have a tax person that has been taking care of all that for me for over 20 years.
Where I am, the person pays the personal taxes, not the business. The total salary the business pays is, of course, fully deductible.
ASKER
Can anyone provide me with a complete list of all of the taxes I will be paying on a 1099 (All Inclusive) basis including how much each tax is (percentage wise)?
No. We would have to know all of your financial details to do that. You don't pay taxes directly on a 1099. If you are filing as a business, that starts as business income and business expenses are deducted. Then what ever remains is added to the other income you have on your state and federal tax forms.
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