How many Drivers have a real job and are doing Uber part time? At Retirement you will be homeless!

Coffeekeepsmedriving

Well-Known Member
If you are doing this full or part time you will miss out on the benefits of social security and/or a pension.
I am retired and am collecting $3,200 a month on social security plus a pension.
Its better to get 2 part time real jobs than only one real job and uber..
if you do not pay into social security or get a pension, you're screwed when you retire..
just the facts, nor bragging..I do this 1 or 2 times a week to just have fun..
by the way next month , i'm getting a 2% increase in social security, that comes to about $64.00.a month extra....better than nothing.
Work and think smart...experience
 

Caspita

Well-Known Member
What in the blue hell are you talking about?

I need a few minutes to process this post. Talk amongst yourselves while I do. I'll give you a topic: The Holy Roman Empire was neither Holy, nor Roman, nor an Empire.
I'm assuming this guy just means because this is not a W-2 job then you get no contributions to SS and or pensions (do those still exist? lol).. therefore you don't get to retire on SS money.
 

Mr_Frenchie

Well-Known Member
what???!!??

I'm going to let you pass because you live in Paterson. Something must be in the water.

It's call self-employment tax.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% for 2013 SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.
 
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USMCX

Well-Known Member
There will no Social Security for anyone in a couple decades. You're fooling yourself if you think the trillions in unfunded debt that the Federal (especially under Obama) added will go away. Nothing can stop the tsunami of economic default that's coming. Think Greece, but exponentially worse. So put your money away into a Roth IRA and hope the government doesn't confiscate it when money grows short
 
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Coffeekeepsmedriving

Well-Known Member
  • Thread Starter Thread Starter
  • #10
My regular day job makes Social security contributions and I also have additional 401k/IRA contributions.

Nobody gets a pension anymore.
Sure they do..Any city, state government jobs..plus many more Post office.police and fire...UPS,Banks, etc
Im not going to name them all..But I guess uber drivers wouldn't know this sorry
 

PorkRollUberAndCheese

Well-Known Member
Sure they do..Any city, state government jobs..plus many more Post office.police and fire...UPS,Banks, etc
Im not going to name them all..But I guess uber drivers wouldn't know this sorry
Again, this thread makes no sense. What exactly are you trying to imply? That you are disqualified from Social Security if you drive Uber and have a regular day job?
 

Coffeekeepsmedriving

Well-Known Member
  • Thread Starter Thread Starter
  • #12
Again, this thread makes no sense. What exactly are you trying to imply? That you are disqualified from Social Security if you drive Uber and have a regular day job?
To get started, you’ll need a fairly new car, a driver’s license and clean driving record and an iPhone to access Uber’s app that connects you with riders (if you don’t have an iPhone, you can pay Uber $10 a week to rent one).

You’ll also need insurance. Check with your insurance company to make sure your policy covers you when you’re using your car for commercial purposes rather than just for personal use, because it probably doesn’t. If your provider does offer a hybrid
personal/commercial coverage, your premium for personal coverage will likely go up when you tell your agent you’re driving for Uber.
Suppose you net $50,000 in fares after paying Uber’s commission and that the wear and tear on your car and other expenses give you a $10,000 deduction, giving you a $40,000 in net self-employment income. You’ll pay 15.3 percent SECA tax on 92.35 percent of this amount, or about $5,652. This amount goes on your federal 1040 income tax return.

You are allowed to deduct what is essentially the employer share of the payroll taxes. After doing this and taking the standard deduction and exemption, your taxable income is about $27,000, putting you in the 15 percent marginal tax bracket. You look up the tax tables and calculate that you’ll owe about $3,600 in federal income tax, or about 13 percent of your income.

That’s not all. There’s one other potential “tax” that’s new for tax year 2014: a fee for health insurance. If you don’t have the minimal essential coverage, as required under the Affordable Care Act, then you have to pay the greater of $95 or 1 percent of your income. At your income level, you’ll owe about $300. (You can figure out how much you owe by using the Tax Policy Center’s ACA penalty tax calculator.)

Add the federal income, SECA taxes and ACA fee together, and you’ll owe about $9,500 in taxes, or 25 percent of your net earnings.
Uber provides some commercial insurance coverage for its drivers, according to an Uber spokesman. But you still have to have your own policy and make sure that your coverage applies when you use your personal car for commercial gain.

Taxes are another thing to pay attention to. A lot of attention.

Remember, you don’t work for Uber. You’re a self-employed independent contractor. Instead of receiving a W2, you’ll receive a 1099-MISC form that reports the gross income you made providing services to Uber. Uber won’t have withheld any taxes from your paychecks, and you’ll be responsible for paying the full federal and state income taxes.

To show how being an independent contractor differs from being an employee, let’s assume that you made $62,500 in fares and, after paying Uber $12,500 for its 20 percent commission, you’re left with $50,000.

Figuring out how much you owe to the IRS shouldn’t be difficult. Many independent contractors set aside enough to cover their taxes due, just as would happen automatically if they were working for someone else.
By now, you’ve probably realized that there can be a big difference between the fares from driving for Uber, say $62,000, and what’s left over after paying Uber’s commission, your gas, car maintenance, health and car insurance expenses, and your federal income and self-employment taxes, or about $27,600. And you may still have to pay state and local income taxes, which might add up to another thousand dollars or so.

Keep in mind that you don’t get fringe benefits as an independent contractor. No paid sick leave or vacation days, no subsidized health insurance or free coffee or snacks in the company cafeteria. No employer matching contributions to your 401(k) savings plan. No educational assistance, group term life insurance, health savings accounts and so forth.

Things would be different if you worked for Uber Technologies. You would receive a 401(k) plan, gym reimbursement, nine paid company holidays, full medical/dental/visions package and an unlimited vacation policy. You might even get snacks in Uber’s lunchroom.

Because the value of most of these fringe benefits isn’t included in your taxable income, you don’t have to pay taxes on them. Thus, they’re really good for your bottom line.

Despite all of this, you may still decide that you would like to be your own boss and make extra cash in your spare time (According to Uber, more than half of its drivers work fewer than 16 hours a week).

But, as you consider your employment options, it’s worthwhile to keep in mind that the “independent contractor” business model may not be as attractive as it may first appear.
 

reg barclay

Well-Known Member
Moderator
To get started, you’ll need a fairly new car, a driver’s license and clean driving record and an iPhone to access Uber’s app that connects you with riders (if you don’t have an iPhone, you can pay Uber $10 a week to rent one).
.
Don't mean to nitpick on details but your info seems a bit outdated. You can now use a car up to 15 years old in NJ (don't know about other places). You've also been able to use an Android phone to do Uber for quite a long time already. Being that almost everyone has a smartphone today anyway I doubt that many people are using the Uber rental iphones anymore.
 

Cndragon

Well-Known Member
what???!!??

I'm going to let you pass because you live in Paterson. Something must be in the water.

It's call self-employment tax.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% for 2013 SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.
Exactly. For many years my only income was self employment... I report and pay taxes on my income, and am definitely paying into social security according to the ss statement of benefits I get every year. Only difference is in a full time job your employer withholds a portion of your income for taxes and pays into it. When you're your own boss, your employer is you, so you pay all of it yourself.

Having said all that, before I even got my first job 25yrs ago, my friends and I knew there would be no ss for us to depend on. Also, while some jobs still come with a pension, it's not like back in the 70s, maybe 80's when most any jobs came with one if you worked there long enough. For example, my mom was a secretary and got pension. Those days are long gone.

That advice may have been something to heed 50yrs ago, but not today. Not to mention all the inaccuracies about what one needs to be an uber driver. A lot of bad info here.
 

Xris Xros

Well-Known Member
To get started, you’ll need a fairly new car, a driver’s license and clean driving record and an iPhone to access Uber’s app that connects you with riders (if you don’t have an iPhone, you can pay Uber $10 a week to rent one).

You’ll also need insurance. Check with your insurance company to make sure your policy covers you when you’re using your car for commercial purposes rather than just for personal use, because it probably doesn’t. If your provider does offer a hybrid
personal/commercial coverage, your premium for personal coverage will likely go up when you tell your agent you’re driving for Uber.
Suppose you net $50,000 in fares after paying Uber’s commission and that the wear and tear on your car and other expenses give you a $10,000 deduction, giving you a $40,000 in net self-employment income. You’ll pay 15.3 percent SECA tax on 92.35 percent of this amount, or about $5,652. This amount goes on your federal 1040 income tax return.

You are allowed to deduct what is essentially the employer share of the payroll taxes. After doing this and taking the standard deduction and exemption, your taxable income is about $27,000, putting you in the 15 percent marginal tax bracket. You look up the tax tables and calculate that you’ll owe about $3,600 in federal income tax, or about 13 percent of your income.

That’s not all. There’s one other potential “tax” that’s new for tax year 2014: a fee for health insurance. If you don’t have the minimal essential coverage, as required under the Affordable Care Act, then you have to pay the greater of $95 or 1 percent of your income. At your income level, you’ll owe about $300. (You can figure out how much you owe by using the Tax Policy Center’s ACA penalty tax calculator.)

Add the federal income, SECA taxes and ACA fee together, and you’ll owe about $9,500 in taxes, or 25 percent of your net earnings.
Uber provides some commercial insurance coverage for its drivers, according to an Uber spokesman. But you still have to have your own policy and make sure that your coverage applies when you use your personal car for commercial gain.

Taxes are another thing to pay attention to. A lot of attention.

Remember, you don’t work for Uber. You’re a self-employed independent contractor. Instead of receiving a W2, you’ll receive a 1099-MISC form that reports the gross income you made providing services to Uber. Uber won’t have withheld any taxes from your paychecks, and you’ll be responsible for paying the full federal and state income taxes.

To show how being an independent contractor differs from being an employee, let’s assume that you made $62,500 in fares and, after paying Uber $12,500 for its 20 percent commission, you’re left with $50,000.

Figuring out how much you owe to the IRS shouldn’t be difficult. Many independent contractors set aside enough to cover their taxes due, just as would happen automatically if they were working for someone else.
By now, you’ve probably realized that there can be a big difference between the fares from driving for Uber, say $62,000, and what’s left over after paying Uber’s commission, your gas, car maintenance, health and car insurance expenses, and your federal income and self-employment taxes, or about $27,600. And you may still have to pay state and local income taxes, which might add up to another thousand dollars or so.

Keep in mind that you don’t get fringe benefits as an independent contractor. No paid sick leave or vacation days, no subsidized health insurance or free coffee or snacks in the company cafeteria. No employer matching contributions to your 401(k) savings plan. No educational assistance, group term life insurance, health savings accounts and so forth.

Things would be different if you worked for Uber Technologies. You would receive a 401(k) plan, gym reimbursement, nine paid company holidays, full medical/dental/visions package and an unlimited vacation policy. You might even get snacks in Uber’s lunchroom.

Because the value of most of these fringe benefits isn’t included in your taxable income, you don’t have to pay taxes on them. Thus, they’re really good for your bottom line.

Despite all of this, you may still decide that you would like to be your own boss and make extra cash in your spare time (According to Uber, more than half of its drivers work fewer than 16 hours a week).

But, as you consider your employment options, it’s worthwhile to keep in mind that the “independent contractor” business model may not be as attractive as it may first appear.
You lost me at "iPhone".
 

USMCX

Well-Known Member
There are deductions you have still that mitigate your self employment tax. A lot of deductions...plus I drive an 07 Altima and my rating is 4.88
 

Chi Bones

Well-Known Member
To earn $50,000 on Uber, you would have to generate about $75,000 in gross fares which would be a minimum of 75,000 miles driving giving you about a $42,000 Std mileage deduction. You would have to pay self employment SS on the balance (~$8k) but other than that, you would have zero income tax after the Standard deductions.

Trying to make a living in NJ on 50K is pretty tough but it is a bit of hyperbole to say you will be homeless. Your retirement income is $38k per yr. and I am sure you have your house paid off and extra savings so your cost of living is low. But you are driving to get a little pin money and stay engaged - that is great.

Old people like me always fear for the future generations - but somehow they make their way through even though our generation has made such a mess of things for them.
 

PorkRollUberAndCheese

Well-Known Member
Here's where I am right now:

OP makes an inflammatory thread title about part timers being homeless at retirement, with some out of whack theory that working Uber with your full time job DQs from collecting social security.

When called on it, OP copy and pastes an outdated article from approximately late 2013 about making 62k on Uber.

This entire thread is meaningless.

Bottom line: if you pay taxes on both Uber and your regular job, and your pay stub for your regular job has a deduction for SSI, then you have nothing to worry about.
 
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