The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  https://boards.fool.com/not-at-all-the-big-implication-is-on-social-10753278.aspx

Subject:  Re: Consulting & deductions Date:  4/9/1999  8:09 PM
Author:  JABoa Number:  14213 of 130843

Not at all. The big implication is on Social Security and Medicare taxes. As an employee, you pay 6.2% for Social Security, and 1.45% for Medicare. So does your employer. As a self-employed person you pay both halves of this tax, so you lose 15.3% of your income off the top. Now, a quarter of that is deductible, but it is still a big hit.

You really want to talk to a CPA about how to set your business up. But, as a self-employed individual, you get the same deductions as any individual does.
Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us