Retirement and taxes
Posted By: gourdpainter on 2009-06-24
In Reply to: How are your taxes at the end of the year? - Backwards typist
Here's the scoop on SS and taxes. They do not penalize you once you reach full retirement age, HOWEVER, if you continue to work they will continue to deduct SS from your paycheck and at the end of the year if you make over a certain amount, you also pay taxes on your SS benefits up to 85% of what you receive from SS..
Contrary to what chatty says, they do not want you to take early retirement. They encourage you to wait until full retirement age. That way you might die and they never have to pay a penny. The death benefit to your beneficiary is a whopping $225. If you do the math, you are much better off taking retirement at the earliest possible moment.
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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
Retirement
I will retire in four years. I always advise people who ask me to look at other careers than MTing. Its golden era is long past. I really loathe those matchbook schools (you know, the ones with Sally Struthers in their advertising copy) telling people they can make 40K by taking their pathetic little course. If I had a dollar for everyone who has come to me crying about how they cannot get a job with their so-called diploma from some such school, I could retire right now very nicely. Meanwhile, I hope people will really weigh their options carefully before becoming an MT. It looks to me like MQ really messed up this field for so many in so many ways.
Retirement? What is that?
I start drawing my retirement this year- not quitting MTing- just want to have twice as much coming in per month as I am getting now. Cha-Ching.
Retirement
I believe that people who work hard all their life deserve to retire. They should not be forced into retirement with nothing to show for their hard work. We had dinner guests last night and the topic of conversation that someone brought up had to do with some complaining about older workers taking jobs away from younger workers. None of those in attendance are employed, all have a fairly comfortable retirement. My question was how many people of retirement age do you suppose actually want to work and how many HAVE to work to be sure they have food? Not everyone is physically able to work after reaching retirement age. It should be a choice. How many 70 year olds do you suppose actually want to work or would they rather pursue things they weren't able to do when they were younger and had the responsibility of a full-time job? I, for one, am thankful that I am still physically able to work full-time (if I chose to do so) and still pursue other things as I have done all my life. I've always had more than one basket, my favorite when I did MT and was also a livestock broker. Unfortunately, I am no longer physically strong enough to pursue the livestock brokering. I find that I am just as happy working for free for things I truly believe in. Some on this board say that I should go back to painting gourds (which I still do) but I also have a heart for my MT sisters and brothers who are hurting and if I can make even a little difference in their lives, I will do what I can.
Unless you are retirement age now, I doubt your
hee..hee
I don't see retirement in my future, unless it's the
:(
Me too. I have stopped even considering anywhere else. I am here until retirement.
And that is such a stress-free thing, never to have to retrain for a new company again!
fat cat may be close to retirement sm
but she still has some humanity about her! Probably why she still has a job so close to retirement.
Not all companies have the attitudes that you post. In this business, there is absolutely no call for that kind of attitude. The companies can cover their butts. Half of them don't have work anyway.
I have been through exactly what the poster posted and I told MQ to stick it after 23 years. Have not had a problem getting a job and have been upfront and honest about the situation I found myself in.
When an employer calls someone at hospice and starts ragging on them, knowing full well there is no work to do the 8 HOURS I WAS SCHEDULED PER WEEK, then its time to get out. I did and never looked back. Probably was the boost I needed to get out of that place.
I applaud the OP for doing what she did. Family comes before any doggone job. She won't have a problem geting UE either. She applied for FMLA, they denied her, what else can she do? FMLA is there for situations just like this.
I don't blame her for telling the higher-ups. I would have let them know too before I left that place and never looked back.
Wish I knew waht place it was!
Go back to retirement s/m
I'll ignore that juvenile comment.
I didn't SAY that anyone with a dictionary could do VR or anything else ACCURATELY. I have, however, SEEN companies who used non-MTs to do Q.A. Are you absolutely certain YOU aren't being Q.A.-d by such a person? Furthermore, with companies ever looking for ways to cut MT pay, they might just do that doncha think? I'm sorry to enlighten you to the fact that MT isn't nearly the big deal some of you try to make it. Most of us old-timers received OTJ training in a HOSPITAL which gave us an education you'll never dream of getting in any of the MT schools.
IMHO you need a few more years experience as an MT and maybe, just maybe you could learn something from us old grandmas if you weren't so wet behind the ears that your hearing is impaired.
QUESTION RE. RETIREMENT - sm
I know about this 1-dollar-for-2 for taking early retirement - but I was wondering: Do they take 50% of your Social Security benefits or 50% of your paycheck? If they take half your paycheck, you're essentially working for nothing. If you're working for low wages, it won't pay to go to work. If you have a fairly decent salary between ages 62-66, then it's a TOTAL ------g ripoff! Just wondering.
I have 7 yrs until retirement and I doubt is any MT work SM
will be done in US. I am thinking of other jobs. Instead of some work going to India, or perhaps some other country, most of the work will be done offshore and we in the US will be left little. I'm not hysterical over this, I just consider it a fact of life.
MDI-MD employees, how are you funding your retirement?
To those of you who are working for MDI-MD, have any of you found alternative ways of funding your retirement since the company doesn't offer this benefit?
Any and all positive input would be appreciated.
I am past retirement and do not care anything
about leaving. I want to have my pay from my job and also draw from my social security. Those are my plans and working independent, still travel and do what I want to do and have the money to accomplish.
You're past retirement age
and you only have 36 years? One can say anything they want annonymously but I do believe a person who is past retirement age would have better sense than to tell a fellow MT to go back to retirement. LOL
The only people that are going to make it with VR or ASR are MTs that are nearing retirement and
dont mind the lower wages and who probably already have problems with muscles and tendons from years of MTing or others who as people said are slower transcribers or part time people just supplementing their income who just want to plug along and make a few bucks. Anyone who is self supporting and needs a good income will not make it on those rates without killing themselves and if one company gets away with it they all will because I am sure MQ is next when they come out with their new pay plan and ASR rates and then they will all follow suit. Why send this work overseas and then have to edit it again so I guess they just hope they have everyone behind the 8 ball.
Only about 8 more years till retirement, but I AM going to take the test. (sm)
Have never felt the urge to do so in the past, but the company I am working for now reimburses the testing fees and you get a small raise because you are a CMT. It all adds up to being beneficial for me money-wise, so.... I chose to do it for that reason and that reason alone.
Nope, hope to supplement my retirement years.
x
retiring from Spheris? Gonna get retirement pay from them or Social Security? nm
.
since I didn't pay into social security as an IC, I started a retirement plan to cover me.
x
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!
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.
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
x
Quarterly taxes are not always
an option. Sometimes they are a requirement. You should check with an accountant, but I had a personal experience during my early years of statutory employment status with MQ whereby I did not pay estimated quarterly taxes. Because of some legality, I ended up paying a penalty because according to the IRS I should have been able to predict that my estimated taxes were going to be more than the previous year and therefore I should have paid them ahead.
Again, check with your accountant on that, but I would strongly advise estimated quarterly tax payments.
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