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the self-employment tax IS the 1/2 of your social security...

Posted By: Duh on 2006-02-11
In Reply to: It DOES cost a lot more to be IC - SM - GAtrans

"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.

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As an IC MT do you pay into Social Security? SM

I am an IC MT in California.  Does anyone know if we can pay into SS so that we get compensated for retirement?  As of yet, I have not but would like to in the future, if it is possible.   


Social Security
If I understand it right, assuming you are paying your federal taxes, you are paying Social Security.  It's something like 15.3% of your reported income, half of which you get to deduct if your income is under $102,000.  Gee, think I just barely fall under that tax bracket!  Google "self-employed social security" or something along those lines for a full explanation. 
They are. Many of them get social security checks for
mental illness or other issues. Some of them spend their social security checks the day they get them on booze and gambling. Some people CHOOSE to be homeless, if you can believe that. There are programs out there for them if they apply. I got to know the homeless population of our city pretty well at one of my former job. I could tell you some stories about some of those characters. One guy is homeless, but he could have his house and bank account, his military retirement, and his social security. Instead, he pushes a cart around town and sleeps on park benches. One woman runs down the street in nothing but polyester pants pulled up to her armpits in the bitter cold of winter. She has shoes and a coat, plus welfare and social security benefits.
Social Security will take it from your Schedule C

Social Security will take your earnings from your Schedule C that goes onto your 1040.  Whatever amount you declare and pay your self employment taxes on (15.75%) is the amount that they will use for your yearly earnings. 



How to get in touch with social security?
Went by the office this morning, unbelievable, just wanted to set up an appt but too many waiting. I tried to find the web site but had no luck therel. I have heard you can set up an appt that way, just need to know where to look. TIA.
Can somewhat please guide me as to how to pay Social Security, SM

federal and state taxes as an IC? I am new to this and dont know the first thing about it. How do I get vouchers for the taxes and how do I pay the SS...thank you!

Do you pay quarterly taxes? Can you pay Social Security (sm)

I have always just filed at the end of the year.  Does everyone else (IC) file quarterly?

Also, if I want to pay into my social secirty on my own, can anyone tell me how to do that?



Paying Social Security is not optional.

social security card needed for job?
I am looking for a second job for some extra money and just was called back about one, he said to bring my license and social security number and i said okay bye. cause i was so excited, but then I thought, wait a minute, what? I don't have my social security card with me... First is this true, second how do i get one?
That only covers the income tax, not the social security tax.
You will have to pay the social security tax on your IC pay.
That's interesting since you have to have a social security number to pay taxes
you're full of it
That should be 15% social security of your gross quarterly earnings also. n,


How to claim Social Security for part time

Hello. I have a few small part time transcription accounts and want to know how I can claim them so I can accumulate time for Social Security benefits. I'm an independent contractor using 1099.  



Social security is part of Federal taxes

Your SS is figured in on your schedule C -- after your deductions you pay on your net income and that is added to your federal taxes and you send in one check and pay it all.  You can do quarterly if you do not have a husband to over withold from or if you are not an employee on another job.  Social Security and Federal taxes are not two entities -- but one.


Reading from my social security paper I have in front of me....

In the year you reach full retirement age, $1 in benefits will be deducted for each $3 you earn above the annual limit ($34,440 in 2007) until the month you reach full retirement. AFTER THAT, YOUR BENEFITS WILL NOT BE REDUCED, NO MATTER HOW MUCH YOU EARN.   This is directly from their posting.

See my posting at top, got directly from my social security paperwork
Good point - Income Tax and Social Security
It would be nice to see someone do a study on this.  Not only the income tax dollars there are not going to our federal government, your states, but also what it would do for our social security program.  I am sure we would be shocked at this impact.  No one seems to want to talk about it.  They say that offshoring is good for our economy because it makes businesses more profitable - but at what cost to all of the American people regarding jobs and tax funded programs?  I don't get it.
DID you check with Social Security& does your son receive a check???

Go to SSA.gov and research the payee options.  You may have to use the search engine, but your answer to this particular issue should be there.

I am disabled and while my kids were minors, I had to fill out a form each year on how I, as the payee spent each and every penny of the money they received.  I don't see how his mother can justify how she spent his money for things that you normally would pay.

That said, he is getting Social Security right?  Is your son receiving a dependent check?  Under law, if a parent is disabled and has minor children, each and every one of those children also receive a check until they turn 18 or graduate from high school, which ever comes first.

The check is a percentage of your husbands, so for 800.00, your son should receive at least 350.00.  If you have not been getting this, they would pro-rate it back to when your husbands disability started and that in itself, could solve a lot of your financial problems.  You can also find this out on their website,  HTH

File taxes under the name on file w Social Security....
Name on W2 doesn't have to match, but your tax return has to match SS records. They don't want your marriage license or anything else. Did that for 13 years as instructed by IRS. Didn't have to change it with SS until state changed rules requiring drivers license to match SS records. Still use my maiden name in some limited circumstances.
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.



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.
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.
self-employment taxes
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!

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?
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?

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!

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. 

social anxiety
Maybe we're loners.