I'm contemplating leaving full-time employment and taking a contractor job. That would be paid as 1099 wages. I see that ESP+ has a tab for self-employment income which is where I assume I'd record those earnings.
The SS section refers to copying income from the employee tab of the earnings section. But won't I have to pay into SS from my 1099 income? Is that income not reflected in SS history? If not automatically, how do I account for the fact I'd be paying self-employment payroll taxes?
Further, being self-employed I'd be eligible to contribute a standard IRA. If I choose to do so, do I just subtract those contributions from the self-employment income, before recording it? Or are all individual deductible contributions deducted from all earnings for SS earnings history reasons, regardless earning source?