I have been working as an Independent Contractor for my employer as of 9/11/08. I didn’t have a paycheck by the 9/15 so I will be paying my income from 9/11 on by the 01/15/09 quarterly pay date for small businesses. By the end of the year I will have earned about ,400 from this job. The only deduction I have is about for transportation.

I also held another job earlier in the year from which I earned about 0. Social Security and Medicare were witheld, but not income tax. Altogether I will have earned under the ,200 limit for the entire year of 2008.

What I am unsure of is if I still need to pay income tax. My quarterly earnings are such that I would have earned a taxable amount had I earned that much every quarter, so I am confused about that.

Also, how much of the 15.3% SS&M do I need to pay? I’ve seen literature talking about how half of Social Security and Medicare is usually paid by employers, half of it can be deducted from net earnings…it’s all very very confusing to me.

If anyone can give me an answer, or clarify this that’d be great. I’m not in the market for consultants (I already know some.)

4) You worked from 11:00 a.m. to 5:00 p. m. on Tuesday.
You worked from 8:00 a. m. to 4:00 p.m. on Wednesday.
How many hours have you worked?

5) Your annual salary is ,500.00. What is your monthly salary?

6) Your weekly salary is 0.00 plus 8% of your total sales of ,275.00. Calculate your weekly salary.

7) 65% of 800 is what amount ?

75 % of what number is .00?

9) What percentage of 0.00 is 6.00 ?

10) Change 15% to a decimal.

11) Your employer withholds 25% of your salary (for income tax, social security, medicare). Your weekly salary is 0.00 . What will be withheld by your employer ?

12) You make ,500.00 . Your state tax rate is 1 ½ % . You have two allowances ( exemptions ) . Each allowance is ,300.00 . How much do you owe ?

13) Your gross weekly pay is 0.00 . Your Medicare rate is 1.45 %. What is your Medicare deduction ?

14) Your employer takes 8.65 % of your check for Social Security and Medicare .
You make ,800.00 gross pay. What does your employer take or deduct ?

15) The annual healthcare cost for each employee is ,900.00 .
Your employer pays 80% . What do you pay ?

16) The annual healthcare cost for each employee is ,800.00 .
You pay 50% of this and get paid monthly . What is deducted from your paycheck each month?

17) Find the average of the following numbers.
,500.00 ,500.00 ,500.00
,500.00 ,500.00

19) The average of your last five years is ,500.00 . Your pension is 60% of this average.
What is your pension?

20.)Find the total monthly expenses
Monthly living = 5.00
Monthly fixed = ,278.00
Annual Expenses = ,400.00

21) You have made a purchase of .75 .
The state sales tax is 7% and the county tax is 1.25% .
The total tax is ______ and the total purchase price is _______.

22) You have purchased three pounds of hamburger for .97 .
The unit price is_______.

23) Which is the better buy ?
A 20 oz. Bag of chips for .00 or
a 10 oz. Bag for .50 .

24) A purse has a price tag of .99 . It is on sale at a 25% discount .
What is the sales price ?

25) Your business buys a product for 0.00 . Your business model tells you to mark up your product 33% . How much is the markup ?

I work as an independent consultant providing advisory services. My pay is gross with no deductions for advisory services to my clients in my consulting business.

Specific questions are:
1) Where do I remit the employer/employee portion of Social Security and Medicare?
2) What forms do I use? 1040ES seems to lack worksheets for deducting expenses for self-employed persons.