Contract work taxes calculator
The Self-Employment tax is calculated on 92.35% of your total income. This rate is derived from the fact that self-employed taxpayers can deduct the employer's portion of the tax, which is 7.65%. The tax rate is currently 15.3% of your income, with 12.4% going to Social Security and 2.9% going to Medicare. Multiply your contract earnings by 2.9 percent for the Medicare tax. The Medicare tax is normally shared between employer and employee, with each kicking in 1.45 percent. But when you are