[PLUG] Taxes for contract work...

[Rich Shepard]

On 3 Jun 2003, Michael C. Robinson wrote:

> I'm new at this.  I earned $689.85 in my last check and since I guess the
> limit for not reporting is $500 that I am responsible for the taxes.  Is
> fica really %10.5 for everyone?  I'm a 23 year old dependent with $500 of
> outstanding subsidized stafford loan to pay off @ $50/month, I owe darn
> near everything I've earned so far.  One thing I wonder about is if
> amounts earned below the minimum tax level will be reported by my
> employer, i.e. if I get a $200 check after two under hour weeks will I
> have to pay taxes on that amount?  Is $10.50/hour reasonable for a person
> with a general studies degree from PCC?  Can anyone guess my income tax?

  I'm not an accountant so I recommend that you contact one for definitive
answers. If you're self employed you need to file quarterly tax returns to
the IRS and state. You also need to pay other taxes, depending on the
jurisdiction in which you live. The least expensive way to find out is to
call an accountant for advice specific to your situation. I can give you the
telephone number of my accountant if you wish. She charges only $65/hour;
exceptionally reasonable.

Rich

Dr. Richard B. Shepard, President

                       Applied Ecosystem Services, Inc. (TM)
            2404 SW 22nd Street | Troutdale, OR 97060-1247 | U.S.A.
 + 1 503-667-4517 (voice) | + 1 503-667-8863 (fax) | rshepard@appl-ecosys.com
                         http://www.appl-ecosys.com/