Social Security Tax

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Contractor-Employer
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Having 1 or more employeesl, full or part-time, is subject to Social Security Laws of the IRS; Must have Employer’s Identification Number (EIN) from IRS or SS Administration; Must copy SSN of employer directly from Original Social Security Card.
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FICA
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Federal Insurance Contribution Act; Est. by Fed. Gov. as insurance for workers when they retire or become unable to work; Contributions made by both Employee & Employer at a % of employee wages (equally); Percent Est. during the year, currently at (7.65%); Paid to IRS quarterly.
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Social Security Act
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Requires that each employer furnish his employees at end of calendar year or terminatin of employment a written statement showing Period Worked, Wages Paid, & FICA deductions.
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Form 1099
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Used when paying Independent Contrators (Lic. Sub) as opposed to wage earners; Independent Contractor pays own Social Security Tax Yearly at 15.3% on Schedule SE; May be issued at End of Year by Employer.
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Sales & Use Tax Rules
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Contractor regarded as consumer of ‘MATERIALS’ & retailer of ‘FIXTURES’; Sales Tax or Use Tax applies to tangible personal property and due upon the cost of such materials to the contractor.
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No Resale Number
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If Sales Tax is paid by Contractor at time of sale, the contrator has no further sales tax liability; Unless contractor marks up materials before resale; Sales tax is reported to State Board of Equalization.
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Using a Resale Number
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Available through State Board of Equalization; If Contractor uses Resale number, he would buy it wholesale and now be responsible for reporting all taxes due after selling to customer; Only with Resale Number can Contractor LEGALLY markup products being sold.

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