There has been a position open up at my work. It is a part time position, 10-30 hours per week. It pays $8 per hour. Only catch is it is a 1099. I am hesitant for this reason. But I figure if I put 15% of each check away, that should cover what I owe at the end of the year, right?
I haven't heard from any of the applications I put in and I am pretty desperate for money.
Just want some opinions on this.
Thanks!
Opinions Please
August 26th, 2013 at 03:08 pm
August 26th, 2013 at 03:15 pm 1377530122
August 26th, 2013 at 03:17 pm 1377530220
August 26th, 2013 at 03:31 pm 1377531079
You'll have to pay federal income taxes (10%?).
If your state has an income tax, you'll have to pay that. (4-6%?).
So, 29-31% saved from each check for taxes would be a better target. Depends on state tax rate. As noted above, also depends on how much you have withheld from your regular pay checks. Your refund would be credited against what you owe for 1099 income.
But, yeah, my vote is to go ahead and take the job.
August 26th, 2013 at 03:39 pm 1377531578
Self-employment tax is 15.3%, so setting aside 15% regularly will come very close to covering it. However, you must also pay income tax. If you normally receive a large refund, is that from overwithholding, or from a tax credit?
That doesn't mean you shouldn't do it, but it is something to keep in mind when it comes to the pay. Making $15 per hour (for example) as a contractor is not the same as making $15 per hour as an employee.
August 26th, 2013 at 03:58 pm 1377532707
Good luck to you! I can offer no advice about 1099 withholdings. Maybe give it a try and see if it is 10 hours or 15 hours and not 30 hours. Let us know!
August 26th, 2013 at 04:09 pm 1377533354
Personally, I'd probably be more willing to deliver pizzas or similar and let someone else do the paperwork. Plus, I'd probably get more money in the long run with less hassle and likely fewer hours. For $6 per hour, the work had better be for little thought and little responsibility.
August 26th, 2013 at 06:25 pm 1377541545
August 26th, 2013 at 06:59 pm 1377543594