Payroll Accounting

br An in helpless contractor is a person who contracts to commit services for others without having the legal status of an employee . Most people who transfigure as independent contractors follow their own trade , trading or profession . They argon in business for themselvesThere are advantages of being an independent contractor . Independent contractors are nearly your own boss . There is a lot of immunity that comes in being in business for yourself . You great deal take on how , when and where to work , for as much or little term as you wantIndependent contractors also are masters of their economic share . The amount of money you make is directly related to the tonus and quantity of your work . Independent contractors don t have to read their boss for a raise if they want to earn much , they just have to go out and find more than work . And because most independent contractors are not dependent on one single telephoner for their livelihood , the hiring and waiver decisions of any one company don t impact IC s as they do regular employeesThe OASDI program limits the amount of shekels subject to taxation for a given year . The one-year limit this year in 2008 is 102 ,000 . The OASDI tax rate in 2008 for wages paid is set by statute at 6 .2 percent for employees and employers , each . The OASDI tax rate for self-employment is 12 .4 percent in 2008 .

The HI tax is provided primarily by taxes levied on wages and net self employment income . It is required for state and local government workers hired since April 1 1986 . HI tax is levied on all earnings . Since 1992 , only 92 .35 percent of net self-employment is taxable and half of the SECA (Self Employment Contributions take on ) taxes so computed is deductible for federal income tax purposesI would tell my employee that our company could refund the surplus amount of FICA taxes paid . Also , you can get back the excess friendly Security that was withheld when you . until now , claiming that credit for excess Social Security taxes on your give way doesn t guarantee that you ll get a check from the IRS for that amountWorks CitedBell , Kay . Tax tips : Social Security 16 March 2007...If you want to get a full essay, order it on our website: Ordercustompaper.com

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