What percentage tax is took out of your check for your taxes at the end of the year ?
The company I work for doesn't take any out... I know I'm going to owe back I'm asking so I can request them take a percentage out.
- AmyLv 71 year ago
They do not take any additional tax out of your paycheck at the end of the year.
Taxes are supposed to be paid with every paycheck. They are considered late if not paid at least quarterly - all taxes on the money you earned January through March were due by April 15.
Social Security and Medicare taxes are a fixed 7.65% of your pay.
US income tax is not a fixed percentage. The higher your income, the higher your tax rate. If you filled out a form W4 correctly, then your employer should be able to withhold the correct amount.
Each state decides its own taxes, so we can't give a generic answer on how much you owe there either.
- LindaLv 61 year ago
They don't deduct taxes because you're a Contract Employee.....therefore, YOU must pay the taxes yourself.
- EricLv 61 year ago
If you work for a company, then your company is scamming you and the government. I predict that they will give you a 1099 at the end of the year and not a W-2.
They are trying top avoid paying the 7.6% Social Security/Medicare taxes that they are supposed to pay for you. And you pay the other 7.6%. But they will screw you and you will end up paying the whole 15%. And then on top of that, you will pay income taxes. So kiss about 40% of your money goodbye if this happens.
- StephenWeinsteinLv 71 year ago
It's not a fixed percentage, and you can't request a percentage. You can request they take out a specific dollar amount more than they are now (since they are taking $0 now, they would be taking only the "additional amount" you request) or you can adjust the number of allowances on your W-4 and let them do the math to see what happens with the number of allowances you pick and the amount of money you make.
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- Beverly SLv 71 year ago
There's not a set percentage.. it depends on how many excemption's/dependents you have.
- Elaine MLv 71 year ago
A standard 24% is pretty normal.
- Coffee DrinkerLv 71 year ago
Sounds like your "employer" is treating you as an independent contractor and they will issue you a 1099-MISC at the end of the year.
I put "employer" in quotes because legally they're not your employer with this set up. Legally you are running a small business and selling your services to them on a contract basis and they are your customer. You are sort of an employee of your own business - this is why they call it self-employment.
The money they pay you is your business revenue, any money you spend in association with providing your services to your customer is business expenses. Your net profit - which you will owe tax on - is your revenue minus expenses.
You will owe both the employer, and employee portion of FICA taxes (these fund social security and medicare programs). Each portion is 7.65%, so you will owe a total of 15.3% of your net profits for this tax. Its referred to as "self employment tax" in the IRS tax publications.
You will also owe ordinary federal income tax. That could be anywhere from 0% to 35% of your net profit depending on your income level, filing status, deductions, etc.
If your state imposes an income tax (most of them do), then plan on 0% to 10% for that as well.
A few cities also impose a local/city income tax, which may add another few percentage points.
So when you add all this up, a good rule of thumb is to allocate at least 25% to 35% of your income toward taxes. If you're making more than about $50k at this position then you should probably pay for a 1 hour consultation with a tax professional to see if you need to be setting aside even more.
Oh, and you also need to file quarterly reports and send payments, you can't just wait until the end of the year to pay. Your tax pro can explain that as well.
- Anonymous1 year ago
That depends on what tax bracket that you fall into.
- Wayne ZLv 71 year ago
I sounds as if the company is treating you as an Independent Contractor and not an employee. This may or not be correct depending upon the circumstances.
- Work scheduled hours.
- Work under direct supervision (ie a boss)
- Use tools, supplies and equipment owned by the company.
- Pretty much come and go as they please
- Work under limited or no supervision (there are their own boss)
- Use their own tools, supplies and equipment.
If you meet the definition of employee but are being paid as an independent contract, the company is screwing you. In effect, they are having you pay some of their taxes. If it were me, I would put my foot down and demand to be treated correctly or I would quit.
- MarkLv 61 year ago
If they are issuing you a 1099, you aren't an employee, you're an independent contractor. Highly unlikely they would do any withholding. It's your responsibility to pay estimated taxes every quarter.