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Another (even more) minor correction: there's no limit on the Medicare tax, currently 1.45%.

Well, it's 15% for FICA (employee + employer), but there's Nike Presto Black And Grey

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ryanwaggoner 1233 days ago link

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As "bad" as 15%? Tax is at least 38% here in Au for Nike Air Presto Ultra Flyknit Maroon that wage (was 60% not so long ago).

That's "only" for social security and medicare. You still pay federal income tax on top of that.

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arohner 1233 days ago link

nopassrecover 1233 days ago link

ratsbane 1233 days ago link

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But remember that there is non billable work (accounting, etc.) and a 15.3% self employment tax. And also remember that there are probably not 50 weeks of 40 hours/week at this company but rather short term or part time work. federal self employment tax for 2011 is 13.3% (15.3% was for 2010).

jackowayed 1233 days ago link

also normal income tax, which starts at 10% and gets up to 35%. And then the state and, depending on where you live, the city have income and/or payroll tax as well (usually in the single digits).

A minor correction: it's not as bad as 15.3%. Nike Air Presto Ultra Flyknit On Feet

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for anyone else like

The self employment tax is really just the company share of FICA withholding (6.2%) plus Medicare withholding (1.45%) If you're an employee you pay 6.2%+1.45%=7.65% and your employer pays the same. But that's only for the first $106,800 in earnings everything above that is not subject to FICA and Medicare for employer and employee.

watchandwait 1233 days ago link

And on top of that the state income taxes in most states, and sales taxes that usually approach 8 or 9%, and property taxes on real estate (and autos where I live). Most of the rest of the world are very poorly equipped by comparison. i write off most stuff (car, office supplies, computer equip, internet, phone, etc), and pay out yearly dividends on top of a base salary. for a one man corporation, the overhead can be really minimal. if you can get health benefits Nike Presto Toddler

from your spouse and keep nearly 40 hrs week in billable hours, you'll never look back.

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