Purchase Solution

Tax Consequences of Employees vs Self Employed

Not what you're looking for?

Ask Custom Question

How do the tax consequences differ for employees and self employed persons?

Purchase this Solution
Solution Summary

The solution explains the differences in tax consequences for typical employees versus self employed individuals.

Solution Preview

The primary difference in taxes between employees and self employed persons come in the social security and medicare contributions. The employees and their employer's each pay half of the ...

Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • Taxation: Factors for employee vs self-employed contractor

    employees it would result in a substantial tax and penalties.

  • Please compare and contrast acquisition indebtedness and hom

    Are employees or self-employed taxpayers more likely to qualify for the home office deduction? Explain -- Self-employed taxpayers are definitely more likely to qualify for the home office deduction.

  • Business Structure Formation and Status

    Additional student resources - http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Partnerships http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Closing-a-Business-Checklist 2.

  • Issues in taxation

    this deduction provides a measure of equity between employees and the self-employed 12) Hector is a married self-employed taxpayer, and this year he paid $3,000 for his health insurance premiums.

  • On December 31, 2009, Cathy Chen, a self-employed certified

    435154 On December 31, 2009, Cathy Chen, a self-employed certified public accountant (CPA), completed her first full year in business. During the year, she billed $360,000 for her accounting services.

  • Tax Assistance

    258948 Tax Questions 4. What types of income disqualify taxpayers from claiming the EIC? 5. What is the definition of being self-employed? What distinguishes a self-employed individual from an employee? Why is this distinction important?

  • Accounting: Self-Employment Tax Requirements

    As a self-employed individual, you "must also pay SE tax on your share of certain partnership income and your guaranteed payments".

  • What are the major components of the legal system?

    are employees, not self-employed Ability to raise capital/get a business loan.

  • Calculating Self-Employment Tax

    In the second half of the year, he was self-employed and reported $85,000 of self-employment income on his Schedule C. What amount of self-employment taxes is Toby required to pay? This scenario is missing a few important facts.

View More Related Solutions