Don’t forget to pay yourself: Do the self-employed pay extra tax and other payroll questions answered

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Live webinar took place on 10-18-2022 @ 01:00 PM EST
Ro, Speaker
DeMei, Moderator

If you're self-employed or new to dealing with payroll and the taxes that come along with it, you need this webinar. Do self-employed people pay extra taxes? Does being an LLC or an S-Corp matter in how much you pay yourself or an employee? What taxes are you responsible for when paying a contractor or freelancer? Ro Williams is ready to answer these questions during this FREE 30-minute webinar.

We want to create a community around small businesses, so at the end of the talk, we’ll open it up to live questions from attendees. Tell us about you, your business & what you want to know!

Ro Williams, JD, MBA is the Tax Technology Manager at ComplYant. She is an experienced tax professional and has previously worked for both International Law and Public Accounting firms.

Note: This topic covers U.S. businesses only. Any information provided during this event is not intended to be taken as advice or to be perceived as a specific position on any subject of law or tax law.

Q&A

How does unemployment insurance affect payroll taxes?

So, unemployment insurance, it varies. It varies from state to state, what that amount is, how it's collected, and what it looks like. But one thing's for sure, FUTA is always there on that first 7,000. Just make sure you are paying your FUTA. Again, if you have a payroll provider, you won't have to worry about this. Make sure you're paying your FUTA up. Make sure you're paying your SUTA up if your state has it.

If I have employees, does that always mean I need to pay payroll taxes, or if I only use contractors, do I need to pay payroll taxes?

If you have employees, I guess the question is do you have employees, right? If you have employees, you have to pay your payroll taxes. It's not a question. Like I said, you can exempt yourself out all day, but you always have to pay that 15.3%.

If you have a contractor and then they're responsible for paying their own payroll taxes, they're just like you in essence. If you're a sole proprietor, in a partnership or in a single member LLC, they have to pay their payroll taxes based off of Schedule SE. So, they have a different world to worry about when it comes to contractors.

You are only really responsible for employees when it comes to employment taxes. If it's a contractor, you wouldn't have to worry about that. But understand that there's a strict regulation around employees versus contractors because there is that benefit of not having to pay all those taxes, that is one, you know, intense audit flag. So, if you want to play that game, then play it. But I would encourage you not to, not to ever play that audit game with them. If you have an employee, just say you have an employee and pay that expense and write off this expense as appropriate. Whereas if you have a contractor, you don't have to worry about all those employment taxes.