QUESTION
How much tax should I pay and my employer pay?
Asked on Feb 27th, 2013 on Labor and Employment - Colorado
More details to this question:
I am massage therapist. I work for someone. I get paid by each massage and I have to pay state tax on that. However, my employer charges tax from each massage.
6 ANSWERS
Labor & Employment Attorney serving Foothill Ranch, CA
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Gokal Law Group, Inc.
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The answer to your question really depends on what type of employee you are considered to be - are you an employee or an independent contractor? It also depends on how you fill out your W-4 form every year.
Answered on Mar 04th, 2013 at 3:11 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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Two different taxes. I believe your employer is charging a services tax. You should be paying withholding on your income.
Answered on Mar 01st, 2013 at 4:07 PM
Generally in Missouri, services are not subject to sales taxes. You are liable for income taxes on the income.
Answered on Mar 01st, 2013 at 4:07 PM
You should seek guidance on this question from your own CPA.
Answered on Mar 01st, 2013 at 4:06 PM
I am assuming your question is about State sales tax, and not your state income tax. Sales tax is fixed by law, depending on jurisdiction. It varies by county, and some counties have special tax districts. Georgia Department of Revenue can tell you the applicable tax for your location. But, I would think the salon owner is liable for reporting and paying that tax, not you. I do not practice this type of law, so you should not rely on the answer that I give you. Ask Georgia Dept Revenue.
Answered on Mar 01st, 2013 at 4:06 PM
If your employer charges state sales tax, then that is paid solely by him/her. If you are referring to state withholding tax, (i.e., state income tax) you may withhold approximately 3%, and should be close come April 15th.
Answered on Mar 01st, 2013 at 4:05 PM