Are you responsible for your own taxes?
Posted By: sm on 2008-10-10
In Reply to: I have ALWAYS made more than the year before as an MT sm - YOUR opinion, not MY experience
Do you have benefits? How fast do you type?
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ICs are responsible for taxes... sm
and insurance and all withholdings (1099 status). A statutory employee has FICA withheld and usually Social Security (W2 status). Both have to turn in schedules to their companies, but ICs have a little more flexibility. Also, ICs supply their own equipment. Statutories have the option of company supplied (with a rental fee taken from their check, which is waived a lot of times for high production) or use their own equipment. No bennies for either. An IC just usually needs to meet client turnaround times and can stop and start a lot more than a statutory or full employee status person does.
They take out for FICA. You are responsible for state and fed taxes. nm
They must deduct FEDERAL taxes.. NOT STATE taxes.. if they took out state taxes.. it would be FLORID
which would only have to be refunded to you for you to pay YOUR state what you owe them which is nothing but a pain... be glad they weren't handling your state tax.. and I think in this case.. if someone at the IRS told you they have to deduct YOUR states taxes.. it is that person who is uneducated... they only have to deduce federal income tax
As an IC you are responsible
for all of your taxes, including the employer match portion to social security. As an SE, taxes are taken out and the employer pays their portion of SS. SE is like being an employee without any benefits.
WE are responsible
Nobody is responsible for how we invest our 401K's but US! If you have a 401K and can't tolerate investment risk, don't put your 401K money in the stock market, put it in a fixed investment. The investment company has nothing to do with how we choose to allocate our 401K investments. If you have a 401K and don't understand how it works, learn! This is vital to your personal financial survival!
I am only responsible for me
If others are so against what the companies are doing, then they need to do something as far as turning them in, etc. I hear a lot of complaining on this board but to tell you the truth, I do not think it is going anywhere with actions.
YOU and YOU alone are responsible for
letting people take advantage of you. Who else is to blame? People sit here talking about not being able to go out of the home, sitting waiting on work. Do you think the MTSOs do not read here. I know they do because 1 day I got an email from 1 replying to a posting I made. As long as you allow someone to make a door mat out of you, it will continue. I know exactly what I am saying. I would make suggestion but it might be construed as being ignorant.
Not sure if company responsible
for this way of counting or not. They don't pay for headers that you have to look up info for which takes time. I would say about a 30% reduction in line count per report disappears. Where it is going? Right back in their pockets I suppose. Im definitely looking elsewhere
Transcend is responsible for this.
That company has some of the worst managers in this business. They do not care about anything but themselves and think if they just slam the accounts with a lot of MLS to keep them current that is called good management. Some of the good managers take the time to balance out the work so everyone has enough but the lazy ones do not care whether or not we can keep our benefits or pay our bills. But you can't do a thing about it, these are the big boss's pets. You can do what I did - find a second company to work for so you do not rely on them for all your income.
Ultimately, doc is responsible.... sm
Ultimately, it comes down to the responsibility of the physician. I used to have physicians that would put things on the reports like, dictated, but not read. and they would think that got them off the hook, but ultimately, it is their responsibility to review the report for accuracy.
MTSO and client responsible here.
As a former transcription manager I can tell you without even thinking about it that ExText does what it is programmed to do. Your MTSO signs a contract with their clients and all of these things are negotiated. Remember that the new ethics takes the consideration out of whether or not the MT can make a living. It is,however, all about cutting the cost of transcription and I would say it is about time MTs made it their business to be informed about how they are paid and then not rushing to work for companies that do not respect their talents. Why validate people who have no respect for what you do to help their business each day.
You are so right, I stand chastised, we are responsible!
nm
reflect how responsible you are in other things.
x
Don't jump to conclusions about Wbx being responsible here - sm
you never know what is true in advertising. I'd be questioning the integrity of the J&J recruiters, rather than Webmedx!
who is made responsible for the mistakes
that slip through into a patient's report?
Do you think that all transcribed or VR reports are 100% error free?
This is no reason to stop the ongoing change to EMR.
Same thing.
I would always hope that a responsible intelligent MT...
typed my medical records. However, why should an MT be the ONLY ONE to take the perpetual pay cuts and the increased reponsibilities that should belong to in-house employees...you know those people who get raises and good benefits...such as researching demographics, CCs, etc.
This business is really different than when I got into it almost 10 years ago. I really, really feel for the people who have been in it for longer and have few options for a career change.
Ideally, yes, every member of the team, from those running MTSOs to those in hospital administration, would have patient care uppermost in their minds...but you know without it being said it is all dollars and cents to them.
MTs are just collateral damage, and professional people should not have to take a pay cut for trying to be more professional than the other people on the TEAM.
I shudder at some of the reports that I see, too, but I cannot lay a guilt trip at the feet of MTs trying to make a living when the deck keeps perpetually getting stacked against them.
The last job I went into was exactly this way...if you have a foot pedal and knew speech recognition, you got the job because speech was new to them. Their tech support was also the human resources person, chief salesperson, and CEO, so when my footpedal did not work, I had to figure it out. My QA trial was 3 reports and then off. The office manager sent me the account specifics - updated in 2007, but I had no supervisor. I could e-mail her with questions, do not call please, and she would try to find an answer and e-mail me back. There is no weekend and evening coverage for anything...call Dictaphone if you absolutely cannot work. Otherwise, five blanks is acceptable to send to the client.
To me, these are the people who should be told to buck up, not the MTs. How can you possibly expect to have a quality MT if that is all the time and information you give them? Inferior MTs are being created by the industry and accepted by hospitals so they can pinch a penny.
To ask MTs to switch professions if they cannot cut it is ridiculous, because they will just be replaced by MTs who know less than they do or more work sent overseas because there truly aren't enough American MTs to do the work.
I agree with the OP ... the MT or editor is responsible.
As an employee, the MTSO is responsible.
It is their responsibility to make sure their employees are performing to standards. As a good MT, you try to do the best you can with each and every report, but the responsibility ultimately rests on the MTSO.
No, just someone who is not an accountant. Responsible for 200+ employees, ICs in several states. No
nm
Lawsuits? YOU are responsible for final product, sm
VR doesn't claim to put out a perfect product and never will.
No, the MTSO is responsible for the final product,
and when they give you a garbage platform and force you to fly through reports to make minimum wage, it's too easy to make mistakes. They know this & don't care, and THEY are responsible for the product they are selling. If your brand new Toyota explodes, you don't sue the assembly guy, you sue Toyota... so bwahaha to the MTSO.
Taxes
When you work for someone you STILL PAY YOUR TAXES, your employer does NOT except for the 7.5 SS. Look at your pay check, are not taxed withheld??? As an IC you are RESPONSIBLE for withholding your own taxes and sending them in but either as an employee or a IC -- you still PAY them, except for the 7.5 of social security. Sorry but it bugs me when people say as an IC you pay your own taxes as it is incorrect -- you are RESPONSIBLE for paying your own taxes. With your write off's, flexibility and most of the time more pay it does cover the extra SS you have to pay. Been doing it for almost 20 years.
SE and taxes
I'm seriously considering accepting a job as an SE. The employer holds and pays social security but not income tax or other federal tax. My state has no income tax, but I was wondering if I would have to pay Medicare tax as well as withholding tax. Also, is there a way to pay via IRS monthly or bimonthly rather than quarterly. This is new to me and I'm a little spooked. If I would have to pay Medicare, does anyone know what percent that is. I understand I should hold or pay 25% roughly for withholding. Help please. 
Taxes
Absolutely and you do not have to be only an IC for this write off. Even if you are an employee expenses that you incur in order to perform your job which are not reimbursed by your employer are all eligible. I write off my ink cartridges, printer paper, internet service, etc.
Taxes
I really believe a sharp CPA is worth every penny.
Taxes
It is my understanding that if the state your company is located in does not have a sales tax - then they do not handle the state taxes period. Examples would be companies located in Florida and I think Tennessee.
Taxes
The cost is the same to the employee either way, it is just the convenience of not having to deal with it. Whether they deduct it out of your check and pay it or whether they give you the full amount and you deduct it - either way you owe it and have to pay it. Of course it is less convenient to file quarterly taxes. According to my CPA the employer does not have to withhold if their state does not have state income tax. The employee is responsible for paying quarterly in order to avoid any late fines. Maybe each state has their own standards but I can't imagine all these companies in states without state taxes would be getting away with not withholding if that were the case. By the way, having more held out of hubbies return sounds like a good idea to me if you are filing jointly anyway.
Taxes
I wonder then, since this seems to be different state to state, if some of these companies would legally be able to just not employee MTs from states who require the employer, regardless of location, to handle the state taxes. I could see them thinking the paperwork/accounting costs would not be worth it.
SS taxes
just taken out of pay, you have to use bayscribe, but certain programs they can import into bayscribe and yes, they will if asked provide sample reports.
taxes
Yes, they do.
IC Taxes
For some IC is better, I guess it depends on your circumstances. My husband is on disability so our income is very low, we clam the mortgage interest our home and we never have to pay in. I do have to pay 1% local tax each year but that is never more than $100.00 or so. As IC you are able to write off Internet expenses, paper, ink, ref. books ect. For me it is just better. Plus as IC I feel that I have more control, but that is jost my opinion. 
Taxes sm
If you are an IC then you have to pay your own taxes. There is no difference. You would just convert the $$ into US (your bank does this) and keep track of the actual US dollars you made and then claim it on your tax return. Hope this helps.
As an SE..do they pay any taxes..sm
or are you responsible for paying all your taxes yourself?
taxes
Are there are any Radiology jobs that pay part of taxes?
Taxes
The post above is not true. As an employee the employer pays one half of your federal and state (if you have them) taxes. It is not just half of the FICA they pay. It is half of the total federal (Fed, FICA, Medicare.) I was an MTSO for 8 years and looked into making my ICs employees and just couldn't swing it plus try to offer benefits.
taxes
Bravo!!! Obviously, the OP either has grown children or no children. It takes an incredible juggling act to raise kids these days. Most parents in our income range need all the help they can get. Just having custody of a 2-year-old for 6 weeks has taught me that. Daycare alone is taking all I have. You're right - never underestimate the people with authority in nursing homes. My son reminds me of that sometimes - I only hope he is joking! Have a good Monday!!
taxes
I realize that. What I am concerned about is Social Security and how that works and how do I decide how much taxes to hold out of my check to be sure I am covered at tax time? Just looking for some preferences here from people who have done it both ways. Thanks!
After taxes, it's a lot less than $100.....
Skroo that!
IC and taxes
I have just accepted an IC position. I have never worked as an IC before. Do you set aside your tax money and pay it quarterly or at the end of the year. (for next year) Any advice on this would be much appreciated. Thanks!
IC and Taxes
Thanks for the information. I was thinking it would be best to pay quarterly. I have my city taxes set up like that already. Do you know how to set up state and federal taxes to be quarterly?
IC taxes
You don't pay any more taxes as an IC than you do as a regular employee. You pay your taxes differently and pay more up front than you do as an employee, but on the back end when you do your taxes it all evens out.
You have to pay your regular federal withholding. It's the same rate that you would pay based on 0 deductions with a regular job. You can use the tax table http://www.irs.gov/pub/irs-pdf/p15.pdf to figure that out. Then you have to pay the whole FICA tax of 15.3%. Half of that is the employer's portion, which you don't have to pay as an employee. The other half and the federal withholding you already pay as an employee.
When you do your taxes at the end of the year, you enter half of your self employment FICA tax on line 27 (along with a schedule SE) and you deduct it from your gross income.
So you have to pay more up front, but you don't pay more in the long run.
I pay 25% to the feds every time I get paid and I pay 5% to the state every time I get paid. A lot of people like to do it quarterly, but I like to get it over with so I don't think I have the money to spend.
You can make your federal tax payments on line here: https://www.eftps.gov/eftps/ . You have to sign up with them and then they mail you paperwork with online passwords and stuff, so it takes about a week to get actual access, but it's worth it. It's where I pay all of my taxes. Your state probably has an online presence where you can pay your state taxes as well.
I've only ever been an IC so I can't compare working as an IC to working as an employee on production.
rather just under 100,000 a year, after taxes
please. transcribing for a national??
Employees pay taxes too
You are only paying 7.5% more due to SS, and you should be able to find 7.5% worth of deductions to take. If you were an employee you still pay the taxes they just withold it from your check.
withholding taxes? sm
I am fairly new to the IC status. Approximately what percentage should I be putting away for taxes (federal, state and local). I know it varies, but just a baseline amount please if anybody can help me out? I would like to start this with the new year. Where do you put the money, your regular savings account or open a separate account? TIA.
K
Quarterly taxes
I think you just have to make up the difference come tax time. When I called H&R Block, they said the easiest way is to estimate your income and make 25% quarterly payments. So, that is what I will do. Your tax preparer can provide you with a quarterly schedule with dates and amounts, as well as remittance slips and addressed envelopes to make your payments.
HTH - K
Benefits/taxes
You end up paying for these one way or another, if you are an employee you get less per line and do not have the choice of what health insurance, or when to take time off or how to pay your taxes it is all done for you. As an IC you get more per line and you chose which health insurance company to have, when you take time off and how to invest your money so you don't pay as much taxes. Sorry like I have always said even as an employee you pay for the benefits it is just that someone is handling that for you for a price -- lower wages.
If you are an IC NO taxes are taken out. If you are married have
your spouse have extra taken from their check. How much to save you if you need to pay quarterly depends on your income bracket, but around 30%.
The above post made no sense. Having to pay for bennies and working for benefits at another company. Of course you have to work to get bennies, but if a company you work for pays your benefits that results in a higher rate of pay and if you have to work the more you get for working the better.
Speaking of taxes...
when paying self-employment tax, does that include unemployment taxes? I was thinking of filing since it looks like finding another job may take a long time.
Need info on taxes, etc... sm
I had my first IC job in 2005 (did not make very much money though). We do our own taxes, and I would like to know how to find out (in simple terms) what tax forms, etc. I need to include when filing taxes this year. Any help appreciated. Thanks!
IC pay for all the taxes, employees do not.
Half is paid by the company.
Yes, you are an employee so they take out all necessary taxes. nm
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