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Author: Helter Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121594  
Subject: Re: deductions for self-employed Date: 1/26/2000 7:14 AM
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Lucinda asks:
Recently I've started a job where I will be a contractor instead of a full-time employee. Now, in tax year 2000 what if any deductions can I have (considering I'm an individual not a D/B/A)?

I don't know what D/B/A stands for - but just for your general thought process: You have started a business - any valid business expense is deductible. I'd find an accountant - you are also your employer. I think we need to know - are you incorporated or anything or just working on a 1099 basis?

Second question: Taxes: I need to withhold 15% for FICA and what other taxes?
I'm organized as an S-Corp - so I'm my own W2 employee, I withhold:

Federal Income Tax
State Income Tax(if applicable)
Local Income Tax(if applicable)
Federal Unemployment
State Unemployment
Social Security
Medicare
Based on your state, you may need: Workers Compensation Insurance(In PA, officers and directors who own their companies may opt out of workers comp, which I did).

Any references to pertinent tax reading material would greatly be appreciated. As always thanks for the help.
Check out the Self Employed Fools board. You may find others in your State, with your same business organization(sole prop, s-corp, c-corp, parternship, llc, whatever). As for handling all this withholding - I use PAYCHEX - so it costs me about $50 per month to pay myself - but they handle everything including quarterly tax filings and direct deposit.

Helter
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