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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 10097
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I have currently been employed on a casual basis as a

Customer Question

I have currently been employed on a casual basis as a personal care worker, i currently also work at coles partime, and will be picking up casual hrs through agency work as a personal carer. I am unsure which job i should select to pay the higher tax
What do you reccomend i do here. I will be leaving coles eventually
Submitted: 1 year ago.
Category: Finance
Expert:  Lane replied 1 year ago.

Hi,

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Can you tell me more?

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If I understand your question correctly, you might want to select the one where you'd be considedered an employee (rather than an independent contractor).

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Independent contractors receive a 1099-MISC and have to pay what's called "Self-Employment tax." (which is really just both the employee and employer halves of social secudity and medicare).

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All things being equal, if you're employed as a W-2 employee you'll only have the employee half of Social Security and medicare tax (called FICA).

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But to complicate things a little further ... if you're an independent contactor, you can deduct certain business expenses and only pay tax on the PROFIT from your business.

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Have I understood your question correctly?

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Let me know.

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I'll be here.

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Lane

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Customer: replied 1 year ago.
I am not a independent contractor, i am employed by coles parttime perm and somercare as a casual. Agency work i will be a casual for caring for you agency
Expert:  Lane replied 1 year ago.

OK, then can you you maybe restate your question a little differently?

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What you said was ...

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"I am unsure which job i should select to pay the higher tax What do you reccomend i do here. I will be leaving coles eventually."

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The job that pays the most for the tax year (or contributes the most to whatever other income you have for year) is the job that that will "pay the higher tax".

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But I dont thinks that's exacctly what your're asking... Can you maybe ask your question a little differently?

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Thanks so much...

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I'll be here

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