Jul 16, 2007
Mar 10, 2020
May 25, 2004
gary10113 posted:Quick question to yall. I have 1 venue that gives me a 1099. Just came from H&R block. Because of the 1099 I have to pay my portion of the tax but then I as the self employer must again match that tax. I am thinking about saying adios to this venue. Whats your take on it. How many venues do 1099's I have only the one. Interested in what yall think
I think the matching part that you speak of is paying the full amount of FICA withholding, or Social Security, over and above your income tax liability. For the self employed, FICA amounts to about 15 cents of every dollar earned, up to almost $130,000. That's something to keep in mind when pricing gigs, or new cars, if you expect to pay for them with your earnings from music.
The current tax rate for social security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total.
Coming from someone who has been 100% self employed since the early 70's and is now looking to draw from that withering Social Security pot, don't cheat too much, but if you do, save it.
And remember, you're helping to support a bunch of old guys (and gals) like me.
Nov 18, 2006
Typically, once you start earning over $600 from a venue, (or even band) they can send you a nice 1099, and the same will be reported to the IRS. It's a business expense for them and earnings to you.