AboutJay Allen Finn, CPA Expertise IRS Audits. All Collection Tax problems; specifically but not limited to, delinquent returns, bank levies, liens, garnishments of wages, Also specializing in Offer in Compromise. Limited to 1040/ personal tax issues
Experience 27 years experience as a CPA in the IRS defense area following a position as an IRS Auditor in the oil and gas industries.
Organizations Texas Society of Certified Public Accountants (Peer Assistance Committee), Houston Chapter of the Texas Society.
Publications Submit your articles.com
Education/Credentials BBA - Bachelors of Business Admin., Magna cum laude, Series 6 and 68 - Registered representative, Series 65 - Financial planner. Certified Public Accountant
Question When I work with just a 1099, which means the empoyer does not have to match the taxes paid, how will it affect my SS benefits.
If I don't work with a 1099, would I get more SS when I retire because the employer matches the taxes?
I would appreciate it very much if you could let me know, what would be the best way to go.
Thank you in advance,
Monika
Answer Monika,
If you receive a 1099 your employer does not withhold taxes from your pay. In this case you will have to file a Schedule C and pay self employment taxes. Instead of your employer paying the 2nd half you will pay the entire 15.3% (12.4% for SS and 2.9% for Medicare). 1/2 of the self employment tax is deductible. If you take expenses on the Schedule C, then your SS would be less than employment.
