trippknigh...[at]hotmail.com wrote:

- quote -

If you paid the maximum SS tax (based on gross wages) prior
to becoming a sole proprietor, I doubt that you owe any SS
tax for the rest of the year. Of course, you will still owe
Medicare taxes (employee and employer) on your self
employment income. Use Schedule SE to calculate the amount
due, it will take into account amounts that have already
been paid as a W-2 employee.

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<trippknightly[at]hotmail.com> wrote

- quote -

If you are self-employed in this business, then no
additional payments are due for Social Security. If you are
the shareholder/employee of your corporation (ie: you get
wages) then both halves get withheld/paid at the employer
level. You, as an individual, would get your withheld
excess back and the company will not.

Talk to a local CPA or EA about these issues and others
surrounding your business and the allowed deductions and
required taxes.

--
Paul A. Thomas, CPA
Athens, Georgia

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trippknigh...[at]hotmail.com wrote:

- quote -

It would appear from form SE that a self employed person
does not have to pay more than 2.9% on income in excess of
$94,000. In other words,you don't have to pay the
"employers part" of the tax over $94,000 of incomer.

ed

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<trippknightly[at]hotmail.com> wrote:

- quote -

No, you don't have to pay any of the FICA portion of SE tax.
See Schedule SE of the 1040.

--
Phil Marti
Clarksburg, MD

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trippknightly[at]hotmail.com wrote:

- quote -

It gets taken off your tax when you fill out the 1040 and
Sched C, whatever the rule is. There's no direct payment
for it. It's just a liability cancelled.

An independent contractor simply pays a higher rate for
FICA; there's no distinction between employee side and
employer side.

--
rhhardin[at]mindspring.com

On the internet, nobody knows you're a jerk.

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trippknigh...[at]hotmail.com wrote:

- quote -

If you are reporting your business activities on Schedules C
and SE then you will stop paying both halves when you reach
the limit.

If your business is a corporation and you are an employee of
that corporation the employer will have to withhold FICA
until you reach the limit with that employer. When you file
your 2007 income tax return you will get a credit for the
excess withheld by all your employers. Your corporate
employer will NOT get a refund or credit for its matching
half.

Regards,
Bill

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trippknightly[at]hotmail.com wrote:

- quote -

You've got it correct. Neither you as employee nor you as
(self) employer pays. When you file your 1040 end of year,
you'll use schedule SE to calculate and then consider that
as an employee you formerly paid in enough.

ChEAr$,
Harlan Lunsford, EA n LA

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If I exceeded the income cap for FICA (not medicare, I
believe that has no cap) and am now an independent
contractor, I gather that I don't need to pay my employee
side of self-employment tax. However, do I still have to
pay the *employer* side - the fact that cap was reached
earlier in the year w/ a different employer is irrelevant to
this new employer (myself) from a tax liability standpoint?

Thanks.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >