I work in a Catholic Nursery school on a per-diem basis. They do not take taxes out and
I was wondering if I will be taxed at the end of the year? I receive $10.00 per hour. Please help me!! :confused:
I work in a Catholic Nursery school on a per-diem basis. They do not take taxes out and
I was wondering if I will be taxed at the end of the year? I receive $10.00 per hour. Please help me!! :confused:
Of course you will have to pay tax at the end of the year when you file you income tax and report your income.
It sounds you are self employed, working as a private contractor for this company. You will pay normal taxes but self employment taxes ( will get a 1099 at the end of the year) You need to set back 3 to 4 dollars a hour back for taxes most likely ( depends on your tax status)
If you are going to pay taxes on what you are earning, it would depend on how much you are earning on this per diem basis income per year and whether you have any other income. How much do you figure that you will earn in a year doing this kind of employment and do you have any other source of income, please?
Thanks!
Fr_Chuck is right, good idea to have a withholding account (money you put away for a specified reason) so you have the money for taxes available when the time comes and don't have to scramble to pay it. That is if you don't need every penny you have for living expenses and bills at the end of the month. It isn't easy being an independent contractor, although it looks attractive at first, because basically you have to run your finances like a business.
I am not an independent but my son and husband use the Quicken programme as they are independent contractors.
If this is your ONLY source of income, then 30% ($3 for every $10 earned) should be sufficient to cover your end-of-year tax liability.
If you continue working at this nursery past this year, you will need to file an estimated quarterly tax return (Form 1040-ES) and pay quarterly estimated taxes.
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