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    Andrew S.'s Avatar
    Andrew S. Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Dec 9, 2005, 10:09 AM
    NJ SDI, SUI, Social Security taxes
    For the first time, I will be working as an independent contractor as opposed to an employee. I will live and work in New Jersey. Besides federal and state income taxes, what other taxes will I have to pay and how do I determine the amount, to whom, and when I pay them? I understand I may have to pay SDI, SUI, and social security.
    DJ 'H''s Avatar
    DJ 'H' Posts: 1,109, Reputation: 114
    Ultra Member
    		  
    #2

    Dec 9, 2005, 10:11 AM
    Wow - things work so different in America to the Uk - very interesting. I apolgise I cannot help you out on this one. Just find things like this really interesting.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Dec 13, 2005, 08:24 AM
    Andrew S:

    If you are an independent contractor, you will receive a Form 1099-MISC instead of a W-2.

    You are responsible for paying income taxes and both sides of the Social Security (12.3%) and Medicare (2.9%) taxes.

    You will need to file Form 1040 with Schedule C (to report your Form 1099-MISC income and all your allowable expenses) and Schedule SE (to report the Social Security and Medicare taxes).

    You will also owe NJ state income taxes.

    I suspect you will also owe SDI and SUI taxes, but since I do not practice in NJ and do employment taxes for residents of that state, I am not thoroughly familiar with that aspect of the NJ taxes.

    No matter, because your situation absolutely screams for professional tax help. I suggest you contact a local NJ-based tax professional immediately (before the end of the year) before they get too busy to help you properly.
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