How do I calculate take-home pay if I'm an independent contractor?

[threecats407]

Originally Posted by masterchef1

the company may be misclassifying you as a independent contractor, sounds like they are trying to not pay and ot or benefits not the kind of company that I would want to work for.

Yep. Might want to check the guidelines about that. A lot of places manage to skate on tons of expenses that way until they get nailed.

[Atlwarrior]

Probably wise to automatically set aside 20% from each payout for taxes.

[fishbrains]

Originally Posted by Atlwarrior

Probably wise to automatically set aside 20% from each payout for taxes.

This depends entirely on salary level and state taxes. In general, 20% on 1099 employment is way too low.

You will encounter 13% self employment tax right out of the gate. State and federal taxes are likely going to be more than 7%.

For lower earners, I would set aside 25%, higher earners 30%.

[SFBayBoomer]

Originally Posted by ocnjgirl

I hired an accountant when I was 1099.

....and you look GREAT for your age.

[historyfan]

Originally Posted by fishbrains

This depends entirely on salary level and state taxes. In general, 20% on 1099 employment is way too low.

You will encounter 13% self employment tax right out of the gate. State and federal taxes are likely going to be more than 7%.

For lower earners, I would set aside 25%, higher earners 30%.

Exactly.

OP-- independent contractor means you are self employed. Save 1/3 of what you are paid, because you will need file federal & state income taxes.

Go see a CPA with results of your first two weeks of checks & he/she will tell you what to do. It will be well worth hiring the accountant. You will save the amount of their fee in tax savings by knowing how to keep track of all your deductible business expenses.