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.
A self employed individual must pay Ohio self employment tax, since they don’t have an employer to withhold those federal payments on their behalf. The Ohio self employment tax totals 15.3%, with 12.4% covering Social Security and 2.9% going to Medicare.
To determine the Ohio self employment tax, there are two different calculations. First is the Social Security payment, which is applied against a set amount, established in 2020 as being the first $137,700 of your earnings. The second is the Medicare payment, which is applied against all your combined net earnings. Variations occur for married couples businesses, or if your spouse happens to be your employee.
Since you don’t have an employer to withhold payments on your behalf, you have to make payments to Ohio self employment tax on a quarterly basis:
To make payments to Ohio self employment tax, the federal Form 1040-ES, Estimated Tax for Individuals, is used. It also has a worksheet that helps determine if you’re required to file quarterly estimated tax.