How to handle self-employed income?


B

bmuse21

I'm a contract employee (graphic designer), technically self-employed but
only working with one company. I don't have receivables/payables, inventory,
or any other clients or sources of income. Taxes are not taken out of the
checks I receive.

In Money (2005 Premium), should I enter my income as Services Income? Or
use the Paycheck entry method, with gross or net?

If I categorize my deposits as Services Income, will Money calculate the
Federal/SS/etc taxes from that?

Any quick advice on self-employed income will be most welcome! Thank you!
 
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C

Cal Learner-- MVP

I'm a contract employee (graphic designer), technically self-employed but
only working with one company. I don't have receivables/payables, inventory,
or any other clients or sources of income. Taxes are not taken out of the
checks I receive.

In Money (2005 Premium), should I enter my income as Services Income? Or
use the Paycheck entry method, with gross or net?
If you are a cash accounting proprietor, I would think services
income. If you are accrual accounting, I don't know what you would
do.



If I categorize my deposits as Services Income, will Money calculate the
Federal/SS/etc taxes from that?
No, but it won't calculate those things if you call it a paycheck,
either.
Any quick advice on self-employed income will be most welcome! Thank you!
I would look at the section at
Banking->AccountTools->Categories&Payees->SetUpTaxCategories. Study
how the various categories map to Schedule C tax form lines.

This is not the place to stop, but should give you some things to
look at initially.

If you are doing much business, you will probably profit from using
an accountant.
 

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