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Khardman
New Member

Is it necessary to pay self employment tax and medicare for driving part time for auto dealership. we make dealer trade and auction purchased cars pickups?

 
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JohnW15
Intuit Alumni

Is it necessary to pay self employment tax and medicare for driving part time for auto dealership. we make dealer trade and auction purchased cars pickups?

It depends on how you're paid.  

If you're paid as an employee -- for which you should receive a Form W-2 -- then your Social Security and Medicare withholding should have been taken out of your pay and reflected on the W-2.

If you received a Form 1099-MISC reflecting your earnings -- or received no IRS form at all -- you're probably an independent contractor and will need to pay self-employment tax if your net self-employment earnings are over $400.  

Please see the TurboTax FAQs "Am I considered self-employed?" and "Does a 1099-MISC mean I'm self-employed?" for more information.

https://ttlc.intuit.com/replies/4771022

https://ttlc.intuit.com/replies/4770969

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1 Reply
JohnW15
Intuit Alumni

Is it necessary to pay self employment tax and medicare for driving part time for auto dealership. we make dealer trade and auction purchased cars pickups?

It depends on how you're paid.  

If you're paid as an employee -- for which you should receive a Form W-2 -- then your Social Security and Medicare withholding should have been taken out of your pay and reflected on the W-2.

If you received a Form 1099-MISC reflecting your earnings -- or received no IRS form at all -- you're probably an independent contractor and will need to pay self-employment tax if your net self-employment earnings are over $400.  

Please see the TurboTax FAQs "Am I considered self-employed?" and "Does a 1099-MISC mean I'm self-employed?" for more information.

https://ttlc.intuit.com/replies/4771022

https://ttlc.intuit.com/replies/4770969

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