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PDtax
PDtax, CPA firm owner
Category: Tax
Satisfied Customers: 1892
Experience:  32 years tax experience, including four years at a Big 4 firm.
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Paying into social security ...I work for a company that

Resolved Question:

Paying into social security ...
I work for a company that takes out the normal Fed withholding, state withholding, social security, etc... But I also have a contractors license (Hawaii) and I pay my General Excise tax every year on my side business income.
Question: Is it mandatory to pay social security on my side business income? I don't do anything else but pay my general excise tax on my side income. An accountant does my taxes every year and I am really not finance savvy at all so I don't know if my accountant is gettijg everything squared away dealing with social security owed (possibly on my side income). Can you give me some guidance to this to help me understand? Thanks so much
Submitted: 10 months ago.
Category: Tax
Expert:  PDtax replied 10 months ago.

PDtax :

Welcome to the site. I'm PDtax, and will be helping you today.

PDtax :

If you are reporting your side income on your Federal tax return, you are paying in to Social Security on this income.

PDtax :

You pay in through the self-employment tax levied on your net self-employment earnings. This is added to your wages for Social Security credit.

PDtax :

It is mandatory, and is reported on your Federal Schedule C.

PDtax :

Since you are reporting gross receipts tax to Hawaii, review your Federal tax returns to see if Schedule C or Schedule SE are included in the returns. That will prove you are or aren't paying in on this income.

PDtax :

Thanks for asking at Just Answer. I'm PDtax.

PDtax, CPA firm owner
Category: Tax
Satisfied Customers: 1892
Experience: 32 years tax experience, including four years at a Big 4 firm.
PDtax and 3 other Tax Specialists are ready to help you

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