Simply learn up on self-employment tax and I am majorly confused. Would it not be higher to earn $15K a 12 months as an worker or $18K a 12 months as an impartial contractor? : personalfinance

From what I’ve learn (been studying and looking for hours), the advantages of being an worker are that all the tax stuff is principally taken care of. The one factor I might must do is file the taxes primarily based on what the employer experiences.

For an impartial contractor, then I would wish to maintain monitor of each deduction and file taxes myself? For $18K as an impartial contractor, I noticed that it equates as much as $2,600 in taxes. Does that imply I must save 30% of my earnings each month to pay taxes?

I lastly discovered a job I like, however I used to be principally given two choices: both take minimal wage and signal on as an worker of the shop, or get the next base pay and be an impartial contractor. I am actually torn between the 2.

Any recommendation is welcome. Thanks for studying my put up.