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The self-employment tax in Indiana includes Social Security and Medicare taxes, typically totaling about 15.3% of your net self-employment income. This tax applies to individuals who earn income under an Indiana Self-Employed Part Time Employee Contract. It is important to calculate this tax accurately to avoid penalties. By utilizing resources from uslegalforms or consulting a tax professional, you can manage this aspect of your finances effectively.
Part-time residents in Indiana typically use the IT-40PNR form to file their state taxes. This form allows you to report income earned while residing in Indiana as well as income earned elsewhere. If you are engaged in an Indiana Self-Employed Part Time Employee Contract, this tax form is vital for proper reporting. Online platforms can guide you through the nuances of filing.
It is also important to note that a self-employed worker can be both employed and self-employed at the same time. For example, a worker can be an employee at a company during the day and run a business by night. Employment status may also change from contract to contract.
If you are an independent contractor, then you are self-employed. The earnings of a person who is working as an independent contractor are subject to self-employment tax. To find out what your tax obligations are, visit the Self-Employed Individuals Tax Center.
Independent contractors provide goods or services according to the terms of a contract they have negotiated with an employer. Independent contractors are not employees, and therefore they are not covered under most federal employment statutes.
Whatever you call yourself, if you are self-employed, an independent contractor, or a sole proprietor, a partner in a partnership, or an LLC member, you must pay self-employment taxes (Social Security and Medicare). Since you are not an employee, no Social Security/Medicare taxes are withheld from your wages.
The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. If you are an independent contractor, then you are self-employed.
Simply put, being an independent contractor is one way to be self-employed. Being self-employed means that you earn money but don't work as an employee for someone else.
If you are a business owner or contractor who provides services to other businesses, then you are generally considered self-employed. For more information on your tax obligations if you are self-employed (an independent contractor), see our Self-Employed Individuals Tax Center.
A 1099 worker is one that is not considered an employee. Rather, this type of worker is usually referred to as a freelancer, independent contractor or other self-employed worker that completes particular jobs or assignments. Since they're not deemed employees, you don't pay them wages or a salary.