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Subject:  Re: Fed. & SS taxes on consultant pay Date:  12/7/2000  5:10 PM
Author:  TMFExRO Number:  42618 of 127642

I am considering doing some work on the side for someone who is not my employer. They want to pay me as a consultant and not take any taxes out of my check. Does this mean that I am not only responsible for paying the income tax, but also both portions of social security for this work? Since I am not actually in business for myself would this second employer still be responsible for part of my SS tax? Am I aasking the right questions?

You're asking the right questions, but not using the correct terms. You may not think of yourself as being "in business," but you are in this situation. You'll report your earnings and expenses on Schedule C, and your net income will be subject to self-employment tax, all of which you pay. The person engaging your services is not your "employer," which is a term of art.

Phil Marti
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