I am being paid as an independent contractor. I know I'll get a 1099 and I'm not making more than $15,000 this year. How do I pay the SS taxes? I know I'll pay witholding on my 1040 but not sure on SS. I believe I should save back about 25% for withholding. What else do I need to do.

I'm pretty sure the social security taxes are 7.5%. If you use Turbo Tax, and put in the info, it will figure out the tax that you owe the IRS.

You will report your income and business related expenses on schedule C (Form 1040). Your net income from self-employment (or independent contractor) is subject to SE tax at 15.3%.
To learn more about self employment taxes and estimated tax payments, read
Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor (http://taxipay.blogspot.com/2008/04/tax-filing-by-self-employed-sole.html)

Self-employment taxes are what persons who work as independent contractors pay in lieu of the Social Security and Medicare taxes.

An employee only pays HIS/HER half of the Social Security and Medicare tax. The employer pays the other half.

The self-employed person pays BOTH sides of the Social Security and Medicare taxes.

Hence, 12.4% goes to Social Security, which is capped at about $104,000 for 2008. This means that, any amount over $104,000 is NOT subject to Social Security taxes.

The Medicare portion is 2.9%, but there is NO CAP on this part. That means EVERY dollar of the net profit shown on the Schedule is subject to that 2.9% levee.