In this video you will learn how to pay self employment taxes such as Social Security. Business owners should click here to sign up for our newsletter! [ Ссылка ]
For self-employed people, Social Security taxes work a bit differently than an employee. An employee pays on his or her portion of Social Security taxes. On your paycheck you see that your employer has withheld a portion of your pay, and sent it to the IRS. They have also paid their portion of these taxes. All without any action required on your behalf.
However, as a business owner paying Social Security taxes for yourself, you pay these taxes for yourself and also as your own employer. That is because you are essentially the employee and the employer at the same time. In both cases, you are the one doing the withholding. Here’s another key difference: you get to deduct the employer-equivalent portion of these taxes when you are figuring out what your gross income is. To be clear, this deduction reduces your income, not your earnings. As a result it will only affect the amount of income tax that you pay.
Judd Carlton
Glassner Carlton Financial
163 Madison Avenue
Suite 402
Morristown, NJ 07960
Phone: (973) 539-1945 Ext 12
jcarlton@royalnj.com
www.glassnercarltonfinancial.com
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