Excuse me but federal taxes are paid as employee by employee
Posted By: Patti on 2008-01-30
In Reply to: IC here - GeorgiaMT
The ONLY difference in IC is you pay the ENTIRE amount of the SS which is the 15.25%, as an employee you only pay 7.75%. And you can easily make up that difference in deductions. As an employee you just have someone else manage your withholdings and as an IC you do it yourself. I have much more usable income being an IC and not an employee and I am strict about putting aside what I need to. But everyone always says you have to pay your own taxes, well your employer does not PAY them for you -- except 7.75% of SS, they merely withhold it for you. As an IC you are the employer.
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You pay taxes as an employee
The only additional you pay is the 7.5% SS taxes -- you are just responsible for paying the taxes to the IRS, you don't allow someone to do it for you. I hate it when people say as an IC you pay your own taxes, you take control of the taxes you pay to the IRS and do not allow someone to withhold for you. Be responsible and just pay your own taxes. Many write offs will offset the 7.5%.
Patti
Trying to figure out if I would come out the same as employee vs. IC for taxes...SM
I know the IC will pay self-employment taxes, but if taxes are already being taken out of your check as an employee, you are still paying them, so does it come out the same in the long run? You are still paying the taxes...but the difference is whether they come out right up front from your check or whether you pay them yourself from the money you've (hopefully) set aside.
And how does the statutory employee fall into this? Better or worse? I've only ever been an employee but am exploring other options.
taxes ic versus employee
Don't really understand the $$ difference between being an IC and employee when it comes to taxes. If as an IC you get a check of $1000---and and as an employee your gross wage is $1000--what is the difference in the amount of taxes you pay as an IC versus as an employee? I have gotten the impression you pay a lot more as an IC...is this true? Can someone give me an idea of what the percentage or dollar amounts would be? thanks:)
Can an at home employee deduct a computer on taxes?
I didnt "make out well" having to take the taxes out myself. So I prefer employee status.
x
variables: clinic v. acute, employee (benefits) v. IC (pay taxes);
nm
FT employee just paid 1,000 to be
I picked up a little side job (made $4,000.00 in 2005, July to December) and while doing my taxes, went from having a tax refund of 1,181.00 to 247.00 because I had to pay self employment tax. The write offs were nothing to sing about.
I wanted this job to give me an income in the event my national job fell apart.
It seems that this makes no sense. The PT IC job is EMR (very time consuming, going in and out of windows for each segment of the exam, i.e., HISTORY, ROS, PMH, PLAN...). Plus, he constant corrects himself, requiring backspacing and retyping...
Maybe I should look for another PT job...I need a vacation so badly and my ticket to going on one has just evaporated into thin air. boooohoooo
And you would have paid that much as an employee
Well he is probably thinking you get double for your big benefits. But most do not get benefits except for PTO. Again, I am in the lowest tax bracket and I make good money but have great retirpement set up and deductions. If I were to be an employee either in-house or out, I would have the same bills but now I can write off a lot due to my business. I have so much more of a usable income as an IC than as an employee and I have been both. But I cut my income in less than half with my deductions and much more with my retirement contributions. And I average 30 per hour and that average only is down because I average all my hours in with my income and for one I work in-house for one doctor putting into EMR and get paid hourly and that brings my average down. But if it were only my transcribing at home, it would be closer to 40 an hour. Again, it is all in the thinking, everyone thinks that because they don't see the income in their checks as an employee they are not actually paying "their taxes" but they are. Compare your gross to your net and see what it is. Anyway, I feel your accountant is not comparing oranges to oranges but oranges to apples as there are not many benefits as an employee in this field -- unless you work at the hospital as an employee. But that is my two cents worth and may not even be worth that much.
What if you are employee.. but no benefits, no paid vacation
nm
Not a good deal! I get paid 20/hr employee for working with new MTs
x
You an IC, statutory employee or employee?
That designation, and/or forcing the IRS to designate you, can make a diff. Are you a corporation? Partnership? You need WAY more help than we can give you.
If you are employee, unless suit against your employee
otherwise the posts on here as far as I can see telling it like it is. I think a lot of the posts are so young they just don’t have a clue as to what it means to be an employee. You do as your employee wants (I am talking reason now, not stupidity as far as sexual advances, etc) or else you find another company that fits your personality better. You do not confront, you do not tell your employee no, that is their job, not yours. This is such a simple thing for people who have been in the work force for any period of time.
You pay taxes to the Federal gov't, among others.
The question should not be about what taxes you pay and who gets the money. How governmental entities distribute the money is for them to worry about, not you. As an IC, you will have deductions available to you that are not available as an employee.
Only YOU can determine if the responsibility of being an IC is for you. There is so much more to IC status than taxes. My suggestion is to read up on what is involved in self-employment by checking out a book on entreprenurship from the library or do some reading on the Web. My guess is that you're not ready for this yet but you can be if you do your homework.
Social security is part of Federal taxes
Your SS is figured in on your schedule C -- after your deductions you pay on your net income and that is added to your federal taxes and you send in one check and pay it all. You can do quarterly if you do not have a husband to over withold from or if you are not an employee on another job. Social Security and Federal taxes are not two entities -- but one.
Patti
You have your W2 showing very clearly those taxes were paid. MQ is responsible for those taxes
because you were a statutory employee. That is the responsibility of the employer to pay those just as though you were an employee.
IC or Employee?
I read an article on the web regarding how companies are abusing the independent contractor status to keep from paying benefits, WC, social security, etc. In my situation, I have been with the same company for three years and I do not get shift differential, weekend differential, or overtime. I work 7 days a week, totally directed by the company, hours set by the company, etc. If I had been an employee, which I believe I have been all along, I would be owed thousands of dollars in overtime. Where do YOU fall? Below is the IRS quick look at where you stand.
http://www.ftmn.com/Employee.html
An employee
I cant say who but it is an employee.
You are an employee. I am not. Again, you are an employee because SM
you need "employee stuff" but I am not an employee because I don't need employee stuff. I just need work.
Why do *I* have to adhere to a schedule? I don't. And my MTSO loves me to death because I just make her look good.
You need to go to an all-employee company or a company where you are the boss so you can stop this from happening. The MTSO just wants the work out of there. You want it to all be suspended until you sit down to work, and that is just not going to happen, nor should it.
No, FT employee
Looking for another job this very minute. I think this is way over the line.
As an employee ---
If I actually work 40 hours a week, my gross is about $730, which I think is good when I also have all taxes cut (Federal match), PTO, STD, LTD, healthy, dental, vision, internet reimbursement, quarterly and yearly incentives in addition to base pay. Never run out of work. Benefits add about 30% more to base pay, so it seems to be a wash with the ICs who have commented.
I left a job recently where I worked 5 hours a day and grossed $750/week with all taxes cut, 2 paid weeks vacation a year, free health insurance. I left because they were getting interns to work for free and forcing out their higher paid and longer term employees. Had to use vacation pay when there was not work or not get paid at all.
I like the pay/hours at the former job but I like the current stability that I have now better.
Employee
This is the exact reason our company will never use an IC. We utilize employee status transcriptionists
This is what I do. I am an employee
but my company is in FL where they don't have state tax. I don't need any $$ taken out for federal, but I have extra $$ taken from DH check for state taxes. 2005 was the first full year we did it and this year we are getting back $450 state, when we've paid in the past, plus a penalty for not having enough taxes taken out. You could also change dependents if appropriate.
IC vs employee
Can someone explain to me the difference between 8 cpl as an employee and 8 cpl as an IC? I know you have to pay your own taxes as an IC but what I mean is what does 8 cpl translate into once you pay self-employment tax. How much less are you making as an IC at 8cpl than if you were an employee at 8 cpl is what I am trying to ask. Thanks.
IC vs employee
If you are an employee, the employer pays half of the Social Security tax. If you are an IC, you have to pay the full amount yourself. HOWEVER, you can then take a deduction on your taxes for that second half. I haven't figured my taxes yet, so I don't know if it is a deduction or a tax credit (which is better), but at least it does help so you don't end up paying the entire amount. As an employee you also don't have all the deductions that ICs get, so that makes a difference in the bottom line, too.
Are you IC or employee?
If you are an IC, you can take off whenever you want (with appropriate notice of course). If you are employee, do you have vacation/PTO time? Do they not let you use it when you want?
Are you an IC or employee? - nm
nm
Employee (sm)
I work for MedQuist.
anyone go from IC to employee and like it better?
I was offered a job and I'm now weighing the options. I have always been an IC and have been offered employee status with another company. The pay is 1/2 cent cheaper than what I make now as an IC. The hours are still flexible and they do offer good benefits, PTO, vacation, etc... Has anyone gone from IC to employee or tried both and would like to comment? Thanks!
IC or employee
In my 22 year MT career I've found that doing a bit of both works best for me. Since I'm a single parent I really need the insurance benefits, and with regards to taxes, my accountant told me it's best to keep your W2 job because the taxes you pay there helps to pay your self-employment taxes. I do 20 hours W2 and the other half IC.
ms
IC to employee...sm please
I would like to hear from any of you that have gone from an IC to an employee, on howyou handled the changes. I am thinking about giving up my IC position (which is my own account with a hospital) to look for a full time position with a national company. As an employee, do you really have to sit in front of the computer 8 to 12 hours for your shift? What happens if there is nothing to transcribe? Do you have to stay put and wait?
I have only transcribed as a hospital employee (paid by the hour) and then came home for the same hospital as an IC (paid by the minute of dictation) when my youngest had health problems. I have always had enough work with occasional slow weeks at the same time every year. I have done some IC work with a few smaller MTSO. The hospital is going through a lot of changes and I do not feel that my position is stable. I was offered a position with a national a little over a year ago but raised my rates at the hospital instead. (Although after I raised my rates, they looked into using a service and found I was way cheaper to use). But I have recently figured my line counts with this hospital (Never bothered before because I got paid per minute) and figured I only got paid between 8-9 cpl with the same rate on weekends and nights. I was offered that plus benefits with other companies.
Should I try to find a good company and adjust to the changes in my schedule? (sorry so long)
Not An Employee
I'm confused too. I also worked for just one company as an IC before becoming an employee. If I wasn't an IC, I certainly wasn't an employee at the time. I had no benefits, taxes weren't taken out, etc.
Employee vs IC
Hi Guyz,
Could anyone tell me what is difference b/w working as home based employee as compared to IC. As I myself is IC right now, worked for FTP and online based working environment and find no pressure from employer like phone, chat etc. but work. So is employee status is same in that aspect or is it same as working in company where you got fear that your boss is looking at you all the time. thx!
are you an employee or
self-employed contractor? Do you get benefits, vacation pay, do you work from home?
Not That I'm An Employee No
When I was an IC I always worried when I didn't have a lot of work. Now that I'm an employee and know that I'll get paid for 40 hours and know I'll always get the same amount I'm less stressed. On the other hand, I type for 4 doctors and 1 N.P., and at one point I had upwards of 100 reports in the system that had to be finished. It's been a little slower these past few weeks, though.
I could not as an employee.
My tax preparer said that it was because I did not have enough deductions to itemize as an employee.
Are your IC or employee? sm
If you are an IC, you dictate when you invoice and when payment is due. If you are employee, you really have no say in the matter.
8-1/2 cpl as employee = what as IC
I'm just considering the tax ramifications. They have worthless insurance (reimburses doctors at the rate they get paid by Medicare and you know how doctors don't want to see Medicare patients) so I'm going to get my own insurance and add it to the line count, but not considering PTO, etc. (which they don't have) Their owner (never done MT) pulled out his calculator and said 8.5 as an employee equals 9 as an IC. That doesn't sound right, does it?
Tax ? for those who are both IC and Employee
I work full-time as an employee, but did some work on the side for my brother-in-law. I have a 1099 from him. When I file taxes, do I just file a 1040 with a schedule C-EZ (it was only $1000) for the IC work? Or do I need to file another form to figure out how much in taxes I need to pay?
Thank you for any help you can give me!
Chickadee
Are you employee or an IC?
While I don't personally think you should have to give them up at all, technically I think if you are an employee, everything you create as an employee may actually belong to the employer. I'd still fight it though, especially if you didn't sign any agreement to that effect.
Are you an IC or an employee? nm
d
Employee or IC??
If IC - just raise your rates. If employee are you hourly or cpl? Talk to him and see what he says.
Are you an IC or employee
See below for what it says about being an I/C and therefore a "business" just like the MTSO. I always pay my IC's before myself and I am lucky that my docs pay so well and fast -- usually 48 hours receipt of invoice but did have some many years ago where they did not and it is hard to keep everything balanced. Many times if the general contractor does not get paid neither do the subs on a house construction.
This was IC. Even if employee, though,-sm
it still seems strange to ask for a full-body photo. Why not just a copy of state ID or something if it is merely for ID purposes? Since it was apparently an IC position, however, I don't get the reasoning behind it. If employee, yes, I could see them wanting to be sure it was a separate room or perhaps see what equipment the person already had. Even so, it seems odd, IMO.
As an MTSO who hires ICs, I can't think of one good reason to ask for a full-body photo, or even a picture of the home office, for that matter. I have the IC sign a HIPAA form, and it's up to the IC from that point on to ensure that HIPAA requirements are met. That is good enough for me, and it's been good enough for all of my clients, as well. I've certainly never had any physician ask for pictures of my home office. To each his/her own, I guess, but I'd be taken aback by the request, too.
IC to Employee
I switched from IC to employee status a year ago. I'm actually making more money now and have great benefits and I don't have to work holidays or weekends. I do work 40 hours a week, but I work 6 hours during the day and the last 2 at night.
I am willing to put an employee job
Just as we are expected to use Google in our work, a prospective employer can google that is how I feel.
I do not, however, put full names of my personal accounts. I simply list the specialty, city and state. I do not want someone targeting my clients to offer a lower rate or soliciting them to try and take my clients. I would be careful especially if you are an IC. Call me paranoid, but I think there could be companies out there just trying to get names of clients so they can contact them for themselves to gain work.
Well then EMPLOYEE it is....
If they don't want me to work whenever I want to work, then they'll employee me and pay me benefits with paid time off.  Ahhh, I love being an IC. I laugh all of the way to the bank.
I do believe that would be employee not IC.
An IC should not have to commit to 500 lines. So, you're telling me that on the flip side, you always have 500 lines for that IC? Also, the hours being set between 9 a and 5 p is CONTROL!!!!!!!!!!!!!!!! That's fraud and you should be paying your employee's taxes.
No, she said she is an employee of
the company in her original post.
That is an EMPLOYEE not IC
It does not matter what your contract says one way or the other. If you are on a shift and have to call off like an employee, then you are an employee. To me, shift work = employee and it turns out the IRS generally agrees with that consensus. No one at the company I contract for has ever asked me what hours I work. I stick to the daily production level that I set for myself. That is it. My hours are only the same because it works for me. Control is key here.
$40,000 as an employee
working at a clinic for 4 doctors and one nurse practitioner. I also get yearly raises so the potential to make more.
IC vs. employee
The only thing I'd worry about if switching from employee to IC is the health insurance. I have a lot of medical concerns and would probably end up paying a huge amount for insurance; that is, if they would even cover me with my pre-existing conditions. At least as an employee, I'm covered for everything medical.
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