this is not exactly right

posted above as " Keep in mind that as an IC you are responsible for quarterly IRS payments and that you will no longer be receiving a match as you were when you were an employee. Factor that into your cpl quote."

this is actually two points in one.

1.  You are responsible for your own taxes on this account. You pay 7.5% and if you have an employer, they match the 7.5%. Since you are your "own employer" you pay the additional 7.5%, called "self-employment tax." So understand if this doctor pays you 12 cpl, it is equivalent to 12 cpl less 7.5%, or closer to 11 cpl.

2.  If you have a large amount of 2006 taxes outstanding when you do your Apr 15 2007 filing, the IRS will ask you to pay quarterly. As long as between you and your husband you pay 100% of the previous year's taxes you cannot be fined, even if you owe more come filing time.  So if your taxes for 2006 end up being $4000, between you and your husband, then make sure between his withholding from his checks and your quarterly payment, you pay $1000 each quarter.

Plenty of information on the IRS web sites regarding taxes.

• Advice needed - Switching from employee to IC - MTMOM
  • Thanks! - MTMOM
  • Uh, please... - LORDEE!
    • Ummm, some MT's run their own businesses... - sm
  • IC status - Patti
  • To answer C-phone question - MT2
  • advice - mhmt
    • this is not exactly right - IC2
      • SS tax - Patti
        • Poor you, Patty. I can't imagine living off 20K a year! - LORDEE!
          • 20K is my taxable income - Patti
          • sm - none
            • I second that motion! - mac
        • I understand this except where you say - ER MT
        • better yet is when you incorporate - IC
          • SS - Patti

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