Help? I am going to be a subcontractor for a spa as a massage therapist.?

Question

And I have to handle my own taxes. I am very bad at math. Would someone please help me? If i get 300 in my paycheck what would i have to put away for taxes.

Answer 1

As a subcontractor, this is NOT a paycheck....

Assuming you can actually be classified this way (you set your own hours, you bring your own table, you pay your own expenses), you need to put 20-30% aside for taxes.

If you are told the hours you must work, they provide space and equipment, they pay you even if you have no customers then you may actually be an employee.

Answer 2

How much you have to put away depends on your total income.  If you make $10,000 taxable income, then your tax rate would be 10%.  If you make $100,000 it would be 28%.  Plus you have to pay 15.3% self-employment tax - this is your version of social security.  Then you have to see if you have state &/or local income taxes.

You also can't just "put it away" as you will have to make estimated tax payments on a quarterly basis.

You should look at www.irs.gov and find these publications.

The instructions for Schedule C on the 1040 form

Publication 505 Tax Withholding and Estimate Tax

Publication 583 Starting a Business and Keeping Records

Publication 587 Business Use of your Home

If you are very bad at math, you might want to find a friend or an accountant who can help you.