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    how to start taking care of social security tax
    Hi,
    I hope someone can explain to me how this works.

    I created cleaning company Inc. last year and few months ago I added my husband(we got married this year) as co-owner. We want to pay next year jointly. He has stable income(maintainance) that he can put on company name and I have so far one small job that makes 500$month. Besides this I have few investments as my income. We want to start pay social security tax , what is the best way to do? How to do this? We are both self employed. I know we will need accouter , but I'm trying figure out how the things works here as we both came from foreign country.

    Thank you


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    There is a lot to your question. Social security tax is paid half by the employee and half by the employer. The employee half is withheld from the employee's paycheck. Self-employed people pay both the employee and employer portions, but it is called "self-employment tax."

    Your question says you have created a corporation. If you did create a corporation you are NOT self-employed. You should be hired as an employee of your corporation and get a paycheck. You and your employer will pay social security tax just like any other employee.

    If you don't really have a corporation, than you pay the self-employment tax mentioned above. This can been tricky to understand at first. I wrote some articles on this subject that explains this in more detail.

    See this article for income and self employment tax - click here

    For info on how to hire yourself as an employee of a corporation you own, click here.

    There are links to other articles as well.

    Theses are just articles I wrote and posted on my website, They are too long to put here.


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    Last edited by taxcpa; 11-13-2014 at 09:31 AM.
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    It sounds difficult to understand. Eveything related to tax always makes me nervous.


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    Last edited by angelina89; 12-13-2014 at 10:45 AM.
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    I think you'd better go to consult a relevant sector or professionals, after all, this is a very important thing


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    Your questions are fairly simple, but the law of taxation isn't. Though you will want to employ an accountant, a more prudent way to receive the same kind of advantage is to contract services with a managed service provider. Generally a managed service provider is able to provide most accounting (including taxation works; the two are inseparable) services at a fraction of cost. In short, a managed service is like a big repository of taxation skills that comes for the price of a bookkeeper.


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    Social security tax is paid half by the employee and half by the employer. The employee half is withheld from the employee's paycheck. Self-employed people pay both the employee and employer portions, but it is called "self-employment tax."


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