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Subject:Re: Salary Survey from STC From:Walter Hanig <walter -dot- hanig -at- NETMANAGE -dot- COM> Date:Wed, 10 Jun 1998 12:11:17 -0700
for once, an easy question!
At 02:57 PM 6/10/98 -0500, Michael Burke wrote:
> May I ask a question simewhat related to the salary thread?
>
> If I were a 1099 contractor working at $48 per hour, about how much
> should I put away in anticipation of taxes? Is there a rough
> "standard" that most contractors use?
>
> Michael
Estimate you expenses to determine rough net profit. Then put away the same percentage for taxes as last years tax rate. This will be a little high, because you will have further deductions (SEP, for example).
Adjust the accordingly if you expect significant change from last years net taxable income.
And, most importantly, you must pay US and state (if applicable) estimated income taxes or pay a penalty later.
