Is there a ballpark percentage that I can use to determine how much in taxes I'll pay if I make $700 a week or less as an independent and/or working at a company?

ssshina · ‎June 4, 2019

SteamTrain · ‎June 4, 2019

Sure...crude ballpark.

IF you make $700/week self-employed contractor (no significant business expenses)...vs. exactly the same $700/week W-2. You'll pay ~7.65% more in taxes as an independent contractor (Self-Employed)...because you have to pay both the sides of the SS and Medicare taxes....not just the employee side.

That assumes no significant business expenses. Or about $2600 more for a 50-week working year (roughly)

In either case, you have regular income taxes on top of that.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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SteamTrain · ‎June 4, 2019

Sure...crude ballpark.

IF you make $700/week self-employed contractor (no significant business expenses)...vs. exactly the same $700/week W-2. You'll pay ~7.65% more in taxes as an independent contractor (Self-Employed)...because you have to pay both the sides of the SS and Medicare taxes....not just the employee side.

That assumes no significant business expenses. Or about $2600 more for a 50-week working year (roughly)

In either case, you have regular income taxes on top of that.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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Is there a ballpark percentage that I can use to determine how much in taxes I'll pay if I make $700 a week or less as an independent and/or working at a company?