Thank you IC MT and Winnie

Posted By: Charlene on 2007-10-03
In Reply to: Social Security & Medicare - IC MT

I thought this was the case and was just researching this after the

comment Sotired made about her accountant oh yea and you have to pay your 15% S.S. fee.

He is very knowledgeable so I am sure if I had to pay it, he would have advised me.

I was wondering if her accountant set in a different way where she was exempt from SS taxes or paid a lower amount than what most ICs pay into the system. Sotired - could it be that your accountant just gives you the final amount without breaking down what is you are paying...percentage of federal, percentage of social security, percentage of state, etc. and so you assume you are not paying any social security when in fact is is part of the total tax bill? That is the only thing I can think of unless your accountant is able to exempt you from social security taxes. I am sure he is competent so I may not understand your particular situation.

It is good to get different opinions and make sure I am doing the right thing because I do know there are very stiff penalties for not paying social security at the required amount of 15% of your profit earnings as an IC status (without statutory status). I just wanted to make sure I had it correct from an IRS and legal standpoint.

Complete Discussion Below:

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IC questions - TJ
- Social Security & Medicare - IC MT
  - Thank you IC MT and Winnie - Charlene
- done both and prefer IC status - sotired
- I know you don't have to be incorporated to be an IC - sm
  - While there are tax savings remember you must pay the full 15% of social security - Charlene
    - So in actuality, an IC pays MORE taxes than an employee? - Maggie
      - Everyone has to pay 15% for social security; however, for employees - No
    - in all my years.... - sotired
      - I once had a great CPA too... sm - just letting you know
      - I thought everyone had to pay SS or self-employment tax. nm - LTMT
        i think you do have to pay self employemnt tax, but... - sotired
        You file a Schedule SE on your profit income. - Charlene
        Went to a symposium just this week - winnie
        To Winnie - I do my own taxes not an accountant - Charlene
        Couple of advantages - winnie
      - So tired - what kind of set up do you have - Charlene
        You're correct Charlene... - another 2c

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winnie
Thank you for the info. It is amazing the things people will say when they are not saying it to somebody's face, but anonymously. I don't know who this person works for, but she has a mean attitude!

Winnie - does Medware own TTS?
OK - you work for Medware, and TTS and Medware have exactly the same accounts which makes me think that Medware is funding TTS. Same people have in the past or still do work at both companies. Why not just combine the two publicly and at least Medware maybe will pay their employees on time. Both companies stink in my opinion and yes I have worked at both of them.

To Winnie - I do my own taxes not an accountant
I fill out Schedule SE which is the social security and medicare tax form. However I have thought about hiring an accountant if I am paying too much or tax that I don't need to be paying.

Winnie you're a great trainer
You're at Medware right? A lot of former OSI'ers have gone to Medware.