Can anyone tell me what is the typical % of taxes taken out when you are a 1099 employee. Is 33% accurate? I know you can write a lot off so would it be lower?
I really hope they don't hire you for your sake and theirs. You don't have enough sense to read up on being a 1099 rep before this.
i think you're more of a dipshit for basically applying that because I asked a question about taxes I can't do the job and also assuming that I didnt do research on being a 1099 employee. I read a lot on being 1099 but I figured I would get some insight from a current wright 1099 employee.. thanks for the response u dick.
If your reading on 1099 is the same as how you will read on product you and whoever hires you are in trouble. Your question was phrased in a manner that shows zero understanding of the 1099 concept.
A independent rep works for himself and doesn't have taxes taken out of his paycheck. Hence, he is issued a 1099 rather than a W-2. Go pay an accountant $50 to explain it to you. Also, I hope you're in my territory.
No shit. What I wanted to know is how much do you have to put aside for taxes per month to pay quarterly / yearly? I understand that 1099 is an independent employee, "hence" the 1099 tax form, no benefits, no 401k, no gas reimbursement, etc. I figured people would assume that I understand taxes aren't automatically deducted out of your pay check when 1099. Also, I have spoken with an accountant and he said 30-35% of your net, not gross, put aside for federal taxes. But because there are so many write offs he estimated around 10-15% gross. I wanted to see if that was accurate and I didn't think I had to write this much detail to get an answer.
10% of gross is about right. Make sure that you incorporate as a sub chapter S and you will be given more opportunities to protect yourself and any income.
I was a 1099 rep for 6 yrs. I held back 25-30% of gross. Remember that your quarterly's will not have to start until the following year, and it will be based on the prior year. I always felt that was a comfortable amt for me. That way if you make more than you anticipated, you will have a cushion for your tax bill. Anything left over, you can throw in your SEP-IRA. Always file an extension!
Wow, this is really pathetic to really bash this person for this question...Really? You must have a real LOW self esteem to have to treat someone like this. I personally had the same question so I can pay into taxes on a monthly basis. You address me in that manner, I will chew you up and spit you out.........go get counseling!