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I believe they are also 1099 contract workers as opposed to having W2 employee classification. 1099 means you owe self employment taxes, which can take a signif
by gbrayut 10y ago
I believe they are also 1099 contract workers as opposed to having W2 employee classification. 1099 means you owe self employment taxes, which can take a significant cut out of your gross earnings (ball park 10-15%). You also may have to make quarterly estimated tax payments or you can get a penalty fee when you file in April.
Looks like https://ttlc.intuit.com/questions/2561815-uber-driver-questions https://ttlc.intuit.com/questions/2561815-uber-driver-questi... shows some of the tax issues related to being an Uber driver.
- deleted 10y ago[deleted]
- cheald 10y ago> 1099 means you owe self employment taxes, which can take a significant cut out of your gross earnings (ball park 10-15%). It's an additional 7.65% over what a W-2 employee pays directly. You pay both employer and employee halves of payroll taxes. But payroll taxes are generally believed to be fully incident on wages anyhow, regardless of how you file them (http://www.nber.org/papers/w5053 http://www.nber.org/papers/w5053 http://www.nber.org/papers/w9537 http://www.nber.org/papers/w9537), and you get additional deductions that W-2 employees don't, which may end up working in your favor. The bigger variable is the value and cost of employer-paid nonwage compensation, primarily health insurance and retirement plan contributions.