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What Business Owners Need To Know About Self-Employment Tax
PROFIT AND BEAUTY: A Show For Salon Professionals
English - March 17, 2019 23:04 - 18 minutes - 17.2 MB - ★★★★ - 10 ratingsBusiness Arts Fashion & Beauty beauty salon legal structure hair stylists hair salon how to run a beauty salon hair salon professionals hair salon bookkeeping hair salon accounting salon taxes hair salon income taxes Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Previous Episode: 4 Common Questions I Get Asked At Tax Time
Next Episode: 3 Painful IRS Penalties & How To Avoid Them
How is self-employment tax calculated? - Most W2 employees don’t realize that their employer matches the 7.65% withheld from their paychecks. As I mentioned earlier, we are all required to pay 15.3% of our gross income into Medicare and social security. W2 employees only pay half of the 15.3% while their employer pays the other half, for a grand total of 15.3%. For those of us that are self-employed, we do not have an employer to pay half of our Medicare and social security payments, therefore, we are required to pay the entire 15.3% ourselves. Find out how self-employment tax is calculated and everything else you need to know.