@maheshr3 wrote:
In this case how and when does the 1099 employee pay the taxes and social security Medicare etx?
If you have a net profit from your self-employment then you will owe Self-Employment taxes reported on Schedule SE. You pay 15.3% SE Taxes on the net profit, both the employer and employee portions of Social Security and Medicare taxes with the SE taxes. However 50% of those taxes are entered on your tax return as an Adjustment to Income thereby reducing your Adjusted Gross Income and your taxable income after either the Standard or Itemized Deduction.
