Payroll taxes/
By mgoose
@mgoose (1)
United States
October 4, 2006 7:58pm CST
If my boyfriend starts a new job at $650 pr wk and his job is w/ a sub contractor and he does not take out taxes, how much should he put away for end of the yr taxes.
4 responses
@pussywillow (718)
• United States
22 Oct 06
He is working for someone else? If he's working for a sub-contractor that makes him an employee of the sub-contractor. On $650 a week he should be saving out a minimum of $250 a week. But I think he should find a job where his boss takes taxes out. This arrangement does not right to me.
@claudia413 (4280)
• United States
22 Oct 06
He's an independent contractor. I used to be one and it was a real pain to have to figure out how much to save toward taxes and what I could and couldn't deduct as my business expenses. I like my job now where my employer takes out my taxes and contributes his share. Maybe your boyfriend would prefer to look for a job as an employee and not an independent contractor.
@iheartducks (343)
• United States
5 Jan 07
save 20% - then you might have some extra spending money come tax time!!
@bhbirdie6 (1765)
• United States
15 Oct 06
Generally a company will pay 7 1/2 percent and you pay 7 1/2 percent but if you are a subcontractor without taxes withheld you'll probably want to save 15% for taxes. This also depends on how much you're making so i.e. your tax bracket.
@claudia413 (4280)
• United States
22 Oct 06
He should be sure to put aside at least 20% of his pay each time he gets paid. He should also check with an accountant to make sure that is enough and keep receipts and such for items used in his trade, etc. He can take deductions for many items, but he'll need to check with an accountant for what he can deduct. It's worth the money to pay H&R Block or one of those type services to make sure he gets all his deductions on his return.
