What is the self-employment tax?
The self-employment tax covers Social Security and Medicare for self-employed individuals. You pay it as part of your standard tax payment at the end of the year (or quarterly, see below).
As a self-employed individual, you are responsible for paying taxes on your income. Unlike employees, taxes aren’t automatically taken out of your payments. Instead, you are responsible for setting aside money for your taxes and then paying the IRS.
How much will I have to pay?
This depends on many factors, but as a general rule of them, we recommend putting aside at least the following percentages, depending on your income level.
|Your Annual Income||Your Tax Rate Estimate|
Last updated on July 12th, 2018 at 10:27 pm
You’ve been running back-and-forth from the job site all day and the last thing you want to do is sit in your truck and write down your mileage for the day.
…Every. Single. Day.
Unfortunately if you’re still using mileage log books then you have no choice. Mileage needs to be logged and the entire manual process is your responsibility. As is collecting receipts and turning in all of the paperwork on time to make sure you’re reimbursed or that you’re staying on top of your tax deductible mileage for the year.
If you’ve read our piece on mileage log books you’d know that we understand exactly how you feel – mileage logs are outdated. The good news is mileage tracking apps like Everlance can help solve this problem completely. Continue Reading
Last updated on July 12th, 2018 at 10:28 pm
For those of you that are still using a mileage log book to record your daily business mileage, we wanted to take a moment to show you how you could be saving hundreds of hours every year using an automatic mileage tracking app like Everlance.
We realize that some employers may still require physical mileage log books and hard copies of receipts, but after you read this article we hope that you take this to your employer and show them that Everlance can’t be beat when it comes to tracking mileage & expenses.
This means tracking both mileage & receipts. We seriously do it all and we do it a lot more efficiently than a mileage log book.
Automatic mileage tracking apps like Everlance save both time and money, freeing up employees to do what they do best – work, and minimizing the overhead of collecting log books and receipts, saving time and employee overhead in the process.
However, we don’t want you to think this is just for employees and employers. Everlance is for every person that drives for business, charity or even moving. Continue Reading
Last updated on July 12th, 2018 at 10:29 pm
So, what does this mean and how does it impact employees going forward? We’ll explain.
Outside of minimum wage laws, there is no federal law requiring employers to reimburse employees that use their personal vehicle for business purposes, though most employers have opted to reimburse for these expenses.
If in the past, as a W2 employee, you may have been required to travel offsite to attend an event such as a sales meeting or a convention. If you had opted to use your own vehicle to travel to-and-from the event, you could reasonably expect that your employer would reimburse your mileage if a reimbursement policy was in place at your company, or worst case, you could write off the expense at years end at the current IRS standard mileage rate of $0.545 per mile.
As of 2018 these unreimbursed expenses are no longer possible. Continue Reading