Small company. Receive only check. No tax or anything (employment, unemployed, employer)
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The following two links will show you what your deductions are for an hourly or salaried position. Put the money you're holding for income taxes into a savings account or CD, at least make a little interest off of it.
Go see an accountant and have them help you set up a schedule C so you can pay your taxes quarterly. I'm assuming you don't have benefits through this company so see if you can qualify to be an independant contractor (this is usually OK even if all the work is done for one company). The benefit to this is that you can itemize MANY MANY this way and since you will have a bigger tax burden due to your employer not paying a portion of your income taxes through payroll (they usually pay a portion of your taxes I believe it's like 15%) this will help offset the additional burden.
When you are an independant contractor you can deduct certain expenses most people cannot, office space in your home, internet access, meals where business is discussed, computer equipment, clothing, milage the list goes on and on. Ofcourse a lot of it is based on your industry for while a stylist could write off clothing an accountant could not. A general contractor could wirte off some tools but it wouldn't fly for a personal assistant, writing off a meal at chucke cheese could get you in a lot of trouble but a swanky dinner with 4 clients would be fine. Look into it but don't go overboard with your business expenses and remain honest, the IRS can smell BS a mile away.
You are required to pay your taxes quarterly. There are websites that will help you calculate what your tax liability is based on your "w-4" allowances and such.
No one has addressed the issue of Social Security:
"Pay Into Workers Compensation, Disability, and Unemployment Insurance and Social Security. Workers Compensation and Disability Insurance will vary from state to state. But if you are in a profession that is covered, and your state has these programs, your employer must pay the premiums so that you are covered if you get hurt or unemployed. For all of us, regardless of state or profession, our employers must withhold social security taxes and they must pay half the taxes. So for every $100 that you earn, your employer is required to take $7.65 and put it into Social Security to help pay for your retirement, and they are also required to take an additional $7.65 out of their own pocket and put that into Social Security for you also." Are employers required by law to offer benefits? - by Sue A. Sponte - Helium
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