Article Directory :: Finance & Investment Articles What the 1099-K and Other Self Employment Taxes Cover By John V Republish: EasyPublish™ Published: 27Feb2012 Word count: 421 Viewed: 75 time(s) Get Free Content For Your Site Individuals that don't have a formal employer but instead work for themselves have to pay self employment taxes. These can be confusing to the newly self-employed, whether as a freelance writer or photographer, after having just started some new business, or as a new retailer without a brick and mortar storefront. There are a number of different taxes for the self employed, from the basics that every person working for his or herself has to pay to things like the 1099-K, which are only necessary for those that accept credit card payments. It's worth taking the time to understand what these extra taxes cover and why they are important. The first time a freelancer gets ready to prepare a tax filing, he or she may become frustrated with how expensive self employment taxes are. The IRS website says that the term generally applies to the tax necessary to cover Social Security and Medicare, and is very similar in amount to the deductions made from income by the employer for people employed by another company. This is separate from income tax, which self-employed must also pay. But employers pay a portion of a person's Medicare and Social Security tax that they don't deduct from income. In other words, this tax falls disproportionately on the self-employed compared to those working for a company and receiving a paycheck. The internet has made it easier to have a store and promoting low-cost ways to sell things online. The IRS and Federal Government responded in 2008 with the 1099-K, which has been a requirement since 2011 for any business that sells more than $20,000 in goods and services and has at least 200 payments with one payment processor during the calendar year. Online payment processors and retailers like Ebay and Amazon send this form to small businesses, who then file it as part of their tax return. It is part of the IRS' effort to understand where these small sums that add up to a lot of money are going. Corporate taxes cover a number of different things that are hard to pin down, while self-employment taxes go directly to government retirement and welfare funds that should, supposedly, support those same people when they get older. Despite the importance of tax revenue for the government to continue doing its job, all these various new taxes that a person will face upon becoming self employed do make the move not only more complicated, but somewhat less profitable than may have been expected. Self Employment Taxes and the 1099-K Require Unique Attention from Small Business Owners Who Have a Unique Tax Burden. EasyPublish™ this article - publishers click here More articles by John V

Free Report! Ten Essential Secrets Of Article Marketing ... Grab Your Free Copy Now: We respect your privacy. Need Content? Regular Top Quality Content for your Blog, Ezine or Website ... Delivered Direct, For Free! Click For Details Arts & Entertainment Automotive Business - General Computers & Technology Finance & Investment Food & Drink Health & Fitness Home & Family Internet Marketing/Online Business Legal Pets & Animals Politics & Government Reference & Education Religion & Faith Self-Improvement/Motivation Social Sports & Recreation Travel & Leisure Writing & Speaking

More finance articles:

• Credit Score: Assessing The Damage (Holly Petherbridge)
  Do you know what is on your credit report? You can find out what your creditors are seeing and make sure the information is accurate. Start by requesting a credit report from each of the three credit bureaus and comparing the information found on each.

• Understanding the Concept Of A Gold Retirement Plan (Unnah Mitchels)
  When people are planning for retirement, they use different portfolios including gold retirement plans. There are those who invest in stock market, annuities, and bonds and savings. Some people invest in one or all of the above mentioned portfolios. The choice solely depends on a person's preference.

• Budgeting With Comparison Shopping Tools (Holly Petherbridge)
  Budgeting has become a way of life for many hard working people. Everyday costs continue to rise at a much greater rate than income. The demand for fuel, food costs and utility charges are making budgeting additional costs an even harder job. When it comes to making purchases other than the basic necessity items, comparative shopping has become a way of life.

• Bad Credit Loans Are For Everyone Who Needs Fast Cash Between Paydays (Leo Kingston)
  Bad credit loans have many uses, but they should really be saved for emergency purposes. A customer who chooses to take advantage of these short-term loans will have a brief period prior to his or her next paycheck to use the loan money and take care of the emergency needs.

• What Should Paycheck Loans Be Used For? (Leo Kingston)
  Anything we can do to make life easier is usually high on the list of priorities. Getting loans online can make life easier for sure, depending on the nature of the loan we need and the application process involved.

• A Look at the Changes To The Director Penalty Notice legislation (Trisha Wells)
  The Australian Treasury department has made the results of the public consultation process public with the issue of a new Exposure Draft detailing proposed changes to the director penalty notice regime.

• How To Fundraise Using The Power Of The Internet - Free Fundraiser Ideas For Clubs & Non-Profits (David Sheath)
  If you are like most clubs, associations and non-profit organizations, you are constantly on the lookout for new ideas on how to fundraise using the power of the Internet. Like many others, you have probably already tried a fundraising program or two, maybe successfully or maybe not. Having said that, if you're not familiar with free fundraising web-stores you will find this a compelling read....

• Medical Debt: Approaches To Pay It Off (Holly Petherbridge)
  Whether you are under-insured or carry no health insurance at all, the cost of health care will pile up quickly. Don't let medical debt weigh down your budget and create financial problems. Find ways to help yourself out of burdensome medical expenses.

• Private Health Insurance Options For Baby Boomers (Marilyn Katz)
  Are you over fifty, but too young for Medical health benefits? If so, you may have a hard time finding affordable medical insurance on the private or individual market. Get some tips to help you shop for reasonably priced coverage at any age.