Freelance Tax Inquiry (Self Employment Tax) Hey everyone,
I have a few questions regarding self employment tax for freelance work. First, What constitutes a worker as self employed? I've viewed some resources that suggest many freelancers are misclassified as self employed while they are really employees, therefore shifting some of the tax responsibility to the employer. Second, how does one build in a self employment tax to their business model? Is it proper to charge the client a 15.3% fee for this tax per job or build it into the rate? Any help you can offer regarding this issue is greatly appreciated.
Thank you. |