NYCPHP Meetup

[Mike Dikan]

Self employment rate for SS/Medicare = 2 X employee rate.  Using the  
2008 number of 15.3, employee rate would be 15.3/2 = 7.65% - making my  
single digit % comment valid. http://blog.accountingcoach.com/social-security-tax/ 
  Not every full time employee has a 401k match from their employer,  
and not every employee uses 401k even if it is available (IRAs are  
available to the self-employed as well, correct?), but your point  
about health insurance is very true.

On Jul 30, 2008, at 1:13 PM, sbeam wrote:

> On Wednesday 30 July 2008 12:37, Mike Dikan wrote:
>> This is true, but as someone else mentioned, factor in deductions,  
>> and
>> the fact that SS/Medicare are a relatively small part of taxes when
>> put up against the 800-pound gorilla of income taxes, and the tax
>> rates are roughly similar.  It maybe be a few more % (single digit)  
>> as
>> a freelancer, but they are pretty similar for comparison.
>
> Incorrect, it's 15.3% on the first $94K
> http://www.irs.gov/businesses/small/article/0,,id=98846,00.html
>
> Also, just because something is deductable does not make it free.  
> Also your
> two biggest costs, Retirement and Health Insurance, which are  
> subsidized by
> the tax code for salaried employees, are NOT deductable and come  
> straight out
> of pocket.
>
> _______________________________________________
> New York PHP Community Jobs Mailing List
> http://lists.nyphp.org/mailman/listinfo/jobs
>
> NYPHPCon 2006 Presentations Online
> http://www.nyphpcon.com
>
> Show Your Participation in New York PHP
> http://www.nyphp.org/show_participation.php