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Set aside self employment taxes

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Set aside self employment taxes

When youre an employee, your employer withholds roughly 15.3 percent of your income to fund Social Security. You pay half out of your pocket, and your employer covers the other half. When youre self-employed, you shoulder the entire amount. You dont have to make quarterly payments to cover the tax, but you can avoid getting stung at tax time by setting aside funds to cover those taxes.


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