[thechat] US Contract Gig - Tax Questions

[Joel D Canfield]

On Wed, Sep 29, 2010 at 1:11 PM, Luther, Ron <Ron.Luther at hp.com> wrote:

> Hi Folks,
>
> I figger somebody here (if there *is* anybody here anymore) might know the
> tax implications of taking on a contract job - versus normal employment.
>
> Do contractors get hit with extra SS and Unemp taxes?  That kind of stuff.


for fed: if you make more than $600 during the calendar year you have to
file all the self-employment forms and pay income tax plus SE taxes. assume
33% of what you make to be taxes and set it aside. when you pay your taxes
you might have a buck or two left over.

if you know a CPA, this is the time to call in that favor they owe you and
get a professional opinion.

joel