sub contractor responsable for own taxes

[boatmoter]

Hi, Im retired and on social security, wife works and recently got a new job, employer does not take out taxes or SS - medicare, we have to file joint since shes on the ACA and my SS added with her income makes my SS taxable, if she chooses to stay, is there a fee for being a sub contractor  responsable for her own taxes? and she's on a $17914 a year average, roughly how much are we looking at to pay her SS, medicare & taxes? trying to determine if job is really going to worth staying at??

[xmasbaby0]

Sounds like your spouse is working as an independent contractor since no tax, Social Security or Medicare are being withheld.   That means she will be paying self-employment tax for Social Security and Medicare and ordinary income tax.   She will also need to prepare a schedule C for her business expenses.  She should expect to get a 1099NEC in January or early February which she will have to enter on your joint return.

https://ttlc.intuit.com/questions/2584365-am-i-an-employee-or-an-independent-contractor

https://ttlc.intuit.com/questions/2903027-how-do-i-report-income-from-self-employment

https://ttlc.intuit.com/community/self-employed/help/what-is-the-self-employment-tax/00/25922

https://ttlc.intuit.com/questions/2902389-why-am-i-paying-self-employment-tax

https://ttlc.intuit.com/questions/1901340-where-do-i-enter-schedule-c

https://ttlc.intuit.com/questions/3398950-what-self-employed-expenses-can-i-deduct

[Critter-3]

SE taxes of 15.3% + federal & state taxes at your tax rate + this makes some of your SS taxable. 

Roughly a min of 30% so 18,000 will cost about  $5400. 

[Bsch4477]

As an independent contractor she pays income tax at your marginal tax rate as well as 15.3% of her net self employment income for Medicare and Social Security. She can deduct any business expense from her income as well as her and your medical insurance premiums including your Medicare premiums and any Medigap premiums you are paying. She can also deduct contributions to a SEP IRA to lower her tax liability. 

[Critter-3]

But is she really an employee being treated as a sub contractor in error ?  The IRS is cracking down on this situation where people are being taken advantage of by employers :  https://www.irs.gov/newsroom/irs-reminds-business-owners-to-correctly-identify-workers-as-employees-...