Independent contractor taxes

Question

I was told today by the company I just started working for that I will be a sole proprietor and I would have to pay my own taxes. I'm fairly young and have never had to do this. Can an expert or an accountant give me an rough estimate on how much total taxes I will be paying. I will be making $720 a week. Thank you

Answer 1

$720 per week as an independent contractor is the equivalent of $665 per week for wages.  There are two words that describe the arrangement and the first one is bull.

I have a canned explanation to apparently clueless independent contractors and, if you are asking relatively simple questions in this forum, no offense, but you qualify as clueless:

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 an independent contractor, the employer can dictate what the final product looks like but not how you get there to produce it. 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 employee'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

They may be s******g you pookie!

Answer 3

If they are paying you a weekly salary, it's very unlikely that they can legally treat you as an independent contractor - most likely you are really an employee, and they should be withholding taxes and paying the employer taxes.

That said, if you ARE an independent contractor, you'd file a schedule C or C-EZ, a schedule SE, and a form 1040.  On $720 a week you'd owe around $102 a week for self employment taxes for social security and medicare, plus whatever income tax you owe - no way to tell that without a lot more info