A community of 30,000 US Transcriptionist serving Medical Transcription Industry
How much should indendent contractors save... - cashstrapped
Posted: May 14, 2010From each paycheck? Is it 15%? I might be becoming one.
I save 20% or plan... - jm0405
[ In Reply To ..]
I save either 20% of each check and/or count on paying the IRS with one full paycheck come tax time.
Depends on your deductions. - Happy MT Robin
[ In Reply To ..]
I don't have any kids, so I save closer to 25% for federal and 5% for state. You can look at the IRS tax tables here:
http://www.irs.gov/pub/irs-pdf/p15.pdf
And get a sense of what you should be taking out strictly for the withholding portion of your taxes, and then add 15.65% of the gross amount for the Social Security taxes. Half of that is for the employer's portion of SSA taxes, which you will then claim back as a deduction on your taxes at the end of the year.
That's true too...My deductions are 0-1, no dependents - jm0405
[ In Reply To ..]
I have majority held out so I count on 20% come Uncle Sam's payday. :) Or...to avoid that math, I work for a company as an employee while I continue as an IC so I get a small return in April and won't have to pay. :)
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