Taxes?

[Big Pimpin]

I am looking at doing some contract labor work, what taxes would I pay?  I am guessing 6% income tax plus social security some of that other stuff.  Anybody have any exact figures or a good place for me to look?  Just wanting to see what I am getting into.

[HVACMASTER]

BEST TO FIGURE 25% FOR TAXES.  BASICALLY YOU'LL BE PAYING DOUBLE THE TAXES YOU ARE NOW BECAUSE THE EMPLOYER PAYS HALF YOU PAY THE OTHER, WORKING FOR YOURSELF, YOU PAY BOTH HALVES.  ISN'T THE AMERICAN TAX SYSTEM GREAT.

[YJ_Aaron]

Being as we also have a progressive income tax system your rate for that tax will be based on annual income as of that date.

[Liberty03]

Contract labor?  Be safe to figure 30% when it is all said and done.  HVACMASTER has it correct, I just usually figure 30% depending on how much in expenses you can show against that work.

[Pepper]

I've been self employed for about 20 years.  30% is a good rule of thumb depending on how many dependents you have.

It's not exactly double what you pay now.  The income tax portion will be the same but the FICA (Social Security) tax will double.  Currently your employer witholds about 7.5% from your pay for Social Security and then is required to match it.  Since as a contractor, you are your own employer, you have to pay the whole 15%, thus doubling your Social Security Costs.

Check with an accountant, you are also required to file quarterly estimates based on your anticipated income.

[junkyard]

are you doing it as a sole proprietor, an LLC, an LLC taxed as a corp or LLC taxed as sole, are you an "s" corp., a "c" corp

what are your write offs, there are alot of factors.

my mom is a CPA, 573-201-3484  give her a call, she can help out. she runs 5 Jackson Hewitt offices, also does book keeping and company structuring.

shoot her a call, make sure you include my name. she is getting Barrett on the right track and has my companies set up

[tater]

Keep in mind you will pay taxes on your net income - what you get paid less any expenses you can tie in to making that income.
I would not recommend incorporating unless you want to limit your liabilities for some reason.  If you incorporate you will pay taxes on the corporate income as well as tax on the money you pay yourself.
Unless you set-up an S corporation.
If this is a small thing you are doing on the side it can be easy to set-up yourself.  Otherwise I agree with junkyard - see a CPA.  It will save you time and money in the long run.

[Big Pimpin]

Thanks guys, I am working with a CPA now, just not on this matter.  I took on a new job and I am getting paid as a sub-contractor.

[TanYJ]

So who you pimping Jeep parts for?