You have to pay both portions of.sm - Anon Posted: Nov 28th, 2016 - 5:09 pm In Reply to: IC position Income Loss - Carolyn
the employment tax, the portion you'd pay as an employee and the portion an employer would have paid. Believe it's 7.5%, so doubled would be 15% total. You can also take deductions for your expenses which may offset the extra taxes. You should do some research. I came across lots of great websites that explain everything by using the phrase, independent contractor taxes. If it's possible, ask for a line rate that is at least 10% higher than what they pay employees to offset the fact you are paying half the employment tax and also not taking part in their health insurance program and are not receiving PTO. The company is saving money by not having to pay for those. If their VR rate if 0.04, ask for 0.045 or 0.05. It never hurts to ask.
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