Bonsai Tax is built just for self-employed workers.
It helps tens of thousands of people across the country save an average of $5,600 on their taxes.
This handy book will guide through best practices to follow when calculating your freelance taxes.
Anyone who is self employed is considered both the employer and the employee, meaning thet New York self employment tax must be paid. That amount is 15.3%, comprising 12.4% for Social Security, old-age, survivors, and disability insurance, and 2.9% for Medicare or hospital insurance.
The New York self-employment tax is calculated in two sections. First, a set amount is established each year against which the 12.4% of Social Security is applied. For 2020, that amount is the first $137,700 of your net earnings. The second amount, the 2.9% Medicare payment, is applied to all your combined net earnings. Variations can occur if you file as a married couples business, or your spouse is your partner or your employee.
New York self employment tax has to be paid and filed in quarterly installments on:
If you do not make payments, you could be fined by the quarterly tax penalty rate.
New York self employment tax can be paid electronically with Form 1040-ES, Estimated Tax for Individuals. You can also use the worksheet in Form 1040-ES to determine your quarterly estimated tax obligations.