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Returning Member

Private Contractor

I have a side gig as a private contractor. Currently just have those funds going into a separate account since taxes aren't being withheld. What is the best approach that would allow me to use my funds and set aside the appropriate amount that I have to pay taxes on. 

1 Reply
Employee Tax Expert

Private Contractor

Hi Jld473, thanks for the question.


If you have a regular W-2 job with this side gig, please fill out the re-designed

Form W-4 Employee’s Withholding Certificate


Generally, you will owe both income and self-employment taxes on any self-employment income you receive separate from the wages you receive as an employee. If you want to pay these taxes through withholding from your wages, use the estimator at to figure the amount to have withheld on Step 4 (c) Extra withholding.


Please note that the self-employment income is net of Gross revenue less business expenses. Aside from income tax, the self-employment tax is approx. 14.13% of your net income.


If you do not wish to pay via regular job W4 withholding, you can always pay estimated tax payments on your own by


Hope this helps.

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