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Author: mlk58 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121482  
Subject: Self-employment question Date: 12/2/2004 6:06 PM
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My husband is about to begin working as an independent contractor, after having been working for others for years. I am trying to figure out how much to save for taxes. I know the self-employment tax is equal to twice the amount he was paying as an employee. But what about Medicare tax? As an independent contractor will he be required to pay that, too? Is it reasonable to run his hourly rate and hours through www.paycheckcity.com and save the amount they show for taxes (with the Social Security amount doubled)?

And all these taxes are only on his net business income, right? (He's going to be fronting travel expenses, then getting reimbursed -- I'd hate to think he has to pay Social Security and Medicare on the expense reimbursements!)

Thanks for your help!
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