Home     Contact Us    
Main Board Job Seeker's Board Job Wanted Board Resume Bank Company Board Word Help Medquist New MTs Classifieds Offshore Concerns VR/Speech Recognition Tech Help Coding/Medical Billing
Gab Board Politics Comedy Stop Health Issues

Serving Over 20,000 US Medical Transcriptionists

self-employment taxes

Posted By: Gen on 2006-09-15
In Reply to:

Can anyone tell me how much I need to pay for self-employment tax? I'm thinking about taking a position as an IC and I don't know what percentage needs to be taken out for taxes. Please me tell what ya'll are doing. Thanks!

Complete Discussion Below: marks the location of current message within thread

The messages you are viewing are archived/old.
To view latest messages and participate in discussions, select the boards given in left menu

Other related messages found in our database

Self-Employment Taxes are different, hun.
If you're getting a paystub, you're not self-employed so I don't know what you're talking about. Small business is taxed heavily in California.
Your taxes do not pay employment insurance.
You don't have a right just because you want it.

If your unemployment is govt-subsidized in anyway, remember you're riding on my tax dollars too and I say no way!

You have your W2 showing very clearly those taxes were paid. MQ is responsible for those taxes
because you were a statutory employee. That is the responsibility of the employer to pay those just as though you were an employee.
MT employment
I would be interested in getting into any kind of MT employment.
Hi Cheryl - Can you email me at deb@medicaldictation.com?

IRS says I owe $$$ for self-employment tax (sm)

I just received a letter from the IRS saying I owe over $7000 for 2003.  It looks like they say I owe self-employment taxes for that year.  I was an SE that year and employed by a national.  Is this a mistake?  Has anyone else had this problem?  I'll call or go to an office tomorrow.  I'll be up all night working anyhow, but heck knows what I'll be typing while I contemplate this...


Again SE do not owe self employment tax. nm
That is what self-employment tax is for - sm
as stated below you fill out a schedule C and a SE when doing taxes; this takes care of your FICA (SS) and Medicare payments.

Just wait and see what happens.  Don't panic yet.  It is not worth it financially, but worth it for the flexibility.  I just gave up 10 years of being self-employed and flexible to go inhouse for a sure job.



employment opportunities
Have you thought about getting into medical record coding? I have a friend who went back to school at age 59 and is now coding and she had no medical experience at all -had worked for Nokia and Motorola for years and got tired of the layoffs - she loves it other than getting the overseas dictation to decifer - but that would be easier for you as an experienced transcriptionist. It's just a thought - but you would probably breeze through the course or might could find a hospital that would train you doing ER coding.

Am I living in a dream world thinking that I can actually find clients that will allow me to establish the rules by which I will run MY business?  Or, does being successfully self-employed in this industry mean that I must allow the clients to walk all over me?  I am flexible to a degree, but just want to be able to set limits while still being able to make a living.  Maybe I should find some other industry?

It depends on employment status.
When I was an employee at the hospital, they paid for my phone lines.  As an IC, I pay for my phone lines.  I've only worked for one company that required me to dial into their system using my phone line, and that didn't work out due to constant phone calls bouncing me off their system.  Now I just have one phone line and DSL, so I won't work for a company that wants me to dial in to a Lanier.
TN doesn't have State self-employment tax?
I'm moving!! :)
I just checked my employment agreement and...
it only says you have to return the equipment, it doesn't say who pays for it.  Should I just shut my mouth and pay for it so they don't hold my last check for ransom?
Employment after home study
Does anyone know who will hire a Transcriptionist who has studied at home? Also, will they hire you if you have not been employed as a transcriptionist outside your home? (I have a little hospital experience but years ago).
Court Reporting Employment
How do you get into this field of work?
the self-employment tax IS the 1/2 of your social security...
"On top of the self-employment tax, etc., you don't get the benefit of your company paying 1/2 of your social security so that is where most of your money at tax time goes to. "  please don't post if you don't know what you're talking about.
Your $7182 only cost you $538 in self employment tax...sm
you seem to be missing the fact that there is always 15% paid on your income taxes, 7.5% from your employer and 7.5% from you. When you are self employed, you only pay an additional 7.5% (because you are the employer). You pay the other stuff anyway. No way around it. Death and taxes, ya know.
Has anyone had problems with getting responses for other employment?

An experienced MT in your employment is worth

Sorry, but that needed to be said again - for all you MTSO's out there reading these boards, who think it's good business to keep losing top-notch MTs due to dismal pay rates, and simply replacing them with less-experienced (or worse, OFFSHORE) workers, here's a news flash:  

A seasoned MT in your employ is a money-maker for you, and they should be paid closer to 15-18 cpl to START... not the lousy 7-8 cpl peanuts you're so callously throwing at them. The people who are sending you dictation are for the most part huge, wealthy establishments that can afford to pay a premium price for the premium quality transcription and "I-want-it-yesterday" turnaround-time they're demanding from you.

So please grow a spine, and charge them for what you're MT service is really WORTH.  Don't sell yourselves (and ultimately your MTs) short by always having to bring in the lowest bid for an account.  You might just see more high-quality accounts, and less of the *garbage*.   And then, try paying your MTs who are lining your pockets with money a fair wage with decent benefits, and see how many more of them will stick with you instead of constantly changing jobs in search of one that pays.  Not only would it be the right thing to do morally, but it would be a better for business in the long-run.   


Would you wait until your first year of employment is up
to discuss wage increase or would you just get right to it now and not wait til a year is gone by?
question about pre-employment tests

I'm a long-time IC, but new to applying to jobs from a forum like this and am hitting the employment trail! I've applied to jobs that I see on the Job Seekers forum just by submitting my resume on the board. When I visit their own websites, they often have pre-employment tests too. Do I go ahead and take these tests or am I supposed to be "invited" to test for them, like I hear people talking about on these forums? I don't want to take the test if I'm not supposed to yet, but I figure if it's on their main website it must not be private.

Any advice for this new job hunter? Thanks.

I've used TurboTax for self-employment
and never had any troubles at all. I've used them for about 4-5 years now.
It does violate privacy or employment laws.
I've posted about it before because there were MTSOs trashing MTs by name on some of the boards.  My mother is an HR director, so she's told me what companies legally can and can't divulge about employees or former employees.  Companies are not allowed to prevent people from securing employment, or slander/libel them.  Personal opinions cannot cloud the reference.  They can only confirm or deny the accuracy of certain items, such as employment dates, etc.  I think the most judgmental question they can answer is, "Would you rehire this person?"  Yes or no.
Hopefully you're not cheating on an employment test, right?
shame on you
Edited to remove place of employment. sm

That might be a little too much information. 

Quesiton about difference between income tax and self-employment tax...
Am I correct that income tax and self-employment tax are the same and this is what you pay to IRS and social security tax is separate where you pay both portions rather than employer paying half?  Confused...
Downloading tests via the Internet for employment
Hello all. I was wondering if any of you download tests online when attempting to work for someone advertising here on the job boards. I just feel a little squimish. I'm being instructed to go to the Start Menu, right click, and type in the file name, etc. and then it takes me out to it online. Does this see like a safe thing to do? It doesn't mean anything is going on my PC is it when I type in the file name and password and end up at a site through Internet Explorer.  Sorry for my ignorance or if I'm not making sense.. I just use my computer for a lot of confidential info, etc. and don't want a complete stranger onboard. Any help, suggestions, etc. would be appreciated. Thanks so much.
It is ridiculous to make an employment decision
Benefits with part-time employment?
DOes anyone know of any companies that offer bennies with part-time?
bright spot in the employment picture

I just got a job working for a hospital with a 3/4 million dollar transcription budget whose HIM director wants to bring all the work back in house.  He's offering IC as well as employee with bennies/time off positions.  The wages are fair, and I'm making a great line count on their software (he even let me install my own word expander).  This is a Michigan hospital, but he actually has MTs in other states who work for him.  I had to go in house to train, then I went home.  For anyone who's interested this is at Covenant Hospital in Saginaw, Michigan. 

As an IC when paying taxes, are SS and fed taxes sent SM
to the same place?
She didn't put any names or even employment locations with her post --
she simply listed errors she sees. I would keep a list as well; could be very useful in training new MTs or orienting even experienced MTs about what they have had in the past, how easy it is for one to just "type what they hear" and not pay attention, etc.

She didn't do anything wrong.
I can't ever remember a question of bankruptcy on an employment application. They usually just as
MT week, did anyone receive recognition from your place of employment?
AND, have you ever done anything for others that are MTs?  If you work for a national, ever send them a basket of cookies or anything for MT week?  Do you really thing curiosity killed the cat?
Good grief. You'd make an employment decision
Honey, you need to get a grip!

What about your local hospitals, Manpower, employment agency, Monster, CareerBuilder, etc. nm
THANK YOU! That is my point. She still pays taxes, her DH still pays taxes...

so who exactly is getting cheated?  And just who are you talking about when you talk about whether it is "fair" or not.  I don't give a crap how much taxes my neighbor pays.  It's none of my business.  And if I found out they were paying less in taxes than me, I would ask them how they heck are they doing it so I can do it too!

I just want ask, is it necessary to get personal and insult?  You disagree with me, fine.  But I've been called a liar, a cheat, a no-ingetrity thief, my intelligence has been insulted, and I have had my parenting skills questioned.  That is a little over the top.  If you cannot debate an issue without resulting to personal attacks, then YOU are the stunted one!

It is a very good thing that some of you work at home, ALONE!  You are sorely lacking in people skills and diplomacy.  Let me guess, when you worked in the office you were one of those girls who didn't like to share her desk, griped if someone dropped a crumb on your desk, and kept track of everyone's breaks, lunches, and line counts just so you could tattle to the supervisor!  I've worked women like you, it was like working with kindergarteners.  That's why I came home to work.  Do us all a favor, looking in the mirror, count your wrinkles, and realize that this isn't high school anymore!

I also keep track of all of the write offs!!
Do you also pay your own taxes?
that means it works out to about $13 an hour.

Do you think when you are working for someone else that "they pay your taxes?"  We all pay our own taxes except for the additional 7.5% of SS as an IC you pay.  And I will bet that as an IC/MTSO I pay a lot less taxes than you do and I make more than you do.  I cannot understand the mentality of people that say "you pay your own taxes."   Your employer just "holds your money and pays your taxes."  I am just responsible enough to put the money aside and pay mine but as a IC/MTSO with all my deductions I pay on 20 to 25% of my gross and I am able to put aside $700 to $1000 per month in my retirement which is totally deductable.  Your statement is totally incorrect.


IC - taxes

I am never sure whether to classify myself as an IC or small  MTSO as I have my own accounts.  But where I see a lot of the problem is that the doctors are not making as much as they used to, due to insurance company reimbursement, etc.  They are trying to save every penny that they can just like we do.   I keep my line charges probably quite low according to many standards but I make a a very good living and I cannot see charging the doctors 15 to 18 cents per line when I make very decent money at 11 to 12 cpl -- gross lines.  I also get GREAT tax breaks and though I have to pay the other half of the SS self employment, I still bring home more of a dollar than working for someone else.   I have also found it hard to find anybody that will subcontract to me that is truly dedicated and will work hard. (I pay  8 to 9 cents per gross line  and I deliver tapes and do all the printing, pick ups and deliveries)  I know that kids get sick, there are football games, etc. but this is still a job and you gotta put it first sometimes.   It is hard to find anyone that will work the TAT of  20 to 24 hours by the time I get the tapes to them.   Then that leaves the burden on me.   So I mostly stick to my accounts that bring me in $50 to $55 per year (and this gives me my benefits) and have turned down accounts because I don't want the hassle of the IC's to me and they could be going overseas right now.  But I think that the insurance companies are behind this more than the docs.  When your MRI is interpreted over in India -- do you get a break on the interpretation -- no but the insurance company gets a break on what they pay out so who pockets it???? 

My thoughts and I am sure I will get a lot of disgreements but that is okay we are all entitled to our thoughts.  Oh yea for this amount of money I do work 28 to 32 to hours per week-- just quit an in house part-time job as they wanted me at least 24 hours now, started out at 10 to 12 but the docs found out that they could make more money paying me to transcribe their tapes than to type their own notes in the EMR's even with templates.  So we will be around for a while.   Oh yea if I would have kept on with both jobs would have easily made $65 K but working 50 hours a week was getting to be a bit much.  


IC taxes

One suggestion that I have for all of you that are questioning IC taxes is to look at your past tax refunds when you were an employee and see what percentage was withheld and do about the same.  Yes there is that extra 7.5 for SS but it  is also a deduction and you can look to find 7.5% of your pay as a deduction whether it be in the form of your own retirement fund, etc.  When I saw that I was paying so much to the IRS, I decided that if I could afford that I could start my own retirement fund and did it.  I now contribute close to $1000 to it per month.  So go online, get an old copy of Turbo Tax and run off the schedule C's and see what deductions can be taken for a small business and then see what you can do to save in taxes.   Look at your old tax returns and if you are married have your husband over withold if you can't do it yourself.  You are not paying that much more when you work for yourself you are just in charge of paying them yourself and not allowing someone else to hold it out from your check.   But look at old returns, plan, plan and plan.  When you look at your net vs your gross that will tell you what percentage your employer is holding out.   Either as an employee or an IC we all pay our "OWN" taxes but as an employee someone just does it for you.   Good  luck to all of you.   Patti

You get to deduct sooooo much, part of your housing, utilities, any supplies such as printer paper.   Last year I made about 40,000 and once the deductions were complete, it was right at about 8000 (have kids to deduct of course so that helped)
I live in Alabama and have always been employed in Georgia.  Other than the time I was an IC, we always filed both Alabama and Georgia tax, whether I did the work at home or not.  My husband works in Alabama.  The amount of the tax always pretty much balanced out.  In fact, I usually got a refund from both states, just more for one than the other.  As an IC, I only file an Alabama return, as that is where my "home business" is located, no matter where my "clients" are.   
If you are talking about tax deduction the answer is no.  If you are an employee and the company is taking out your taxes, etc. you are not considered an independent contractor.  If you are SELF-EMPLOYEED...then the answer would be yes.
Maybe they do that because they don't have to pay SS, or withhold any taxes for them since they don't live here.  Maybe we need to put the bug into the government's ear that they are losing out on a lot of money here by allowing them to do this and you know how the government loves money.    Just a thought. 
IC and taxes
Is it a pain to do taxes when you are an IC?  What do you all do?
IC taxes
Go here: https://www.eftpssouth.com/Eftps/

This is for federal taxes and you can pay on a weekly, daily, monthly, etc basis. As far as expenses deductible, you really need to do some research - you can deduct all expenses related to the running of your business. Best thing to do is have a room in the home/apt totally devoted to work and you can then take that % of home as a deduction. You obviously know very little about this stuff or you wouldn't ask that question. I would suggest getting the IRS instruction booklet on home office and the one on business expenses and reading it thru thoroughly. If you are not good at this stuff, then hire someone to do your first year and learn.
IC taxes
Will do that. Thanks for your input.