Tax Fact: Employee or Boss?
Alakov469

It’s Tax fact Tuesday!! Should I be an employee or be my own boss?

Everyone needs income to live and support their family. The question is should I be an employee, or should I be my own boss?

There are pros and cons to both.

As an employee, you are subject to fewer taxes (7.65%) being taken out of your paycheck since your employer is paying half of your payroll taxes.
When you are your own boss, you are subject to self-employment taxes (15.3%). You pay for things post-tax as an employee and pre-tax as a business owner. This means that after your paycheck, which has payroll taxes taken out, you then pay for the things you need. As a business owner, you can take those expenses as deductions from your revenue or income coming in, which also lowers the self-employment tax.

If you like the best of both worlds, you can be an employee and have a small hobby for a side business. This is called a “Schedule C”, if you gain a profit you will be subject to self-employment tax. This also means that the things that you enjoy, whatever it may be, can be used on pre-tax dollars and also enjoyed by you.

If you’re interested in more information on putting together a Schedule C, call us here at Red Rock Tax & Consulting. We will help you start your personal business or give you guidance on how to make your current business success. Call us now for your FREE 30-minute consultation! From all of us here at Red Rock Tax & Consulting; stay safe, stay healthy, remember to wash your hands, and ” whatever you decide to do in life, make sure it makes you. happy “

Have any questions, give us a call here at Red Rock Tax & Consulting. We are here to help you get through the stress of taxes! We offer a free 30-minute consultation so call us and let’s get your appointment set up 435-635-2494

From all of us here at Red Rock Tax & Consulting we hope you have a spectacular day!

For more Tax Tips make sure you are following us on Facebook where we post Tax Facts every Tuesday.

Also, find out more about us at www.redrocktax.com

Have any questions, give us a call here at Metro Tax & Financial Services.
We are here to help you get through the stress of taxes!

We offer a free 30-minute consultation so call us and let’s get your appointment set up (928) 680-1444

For more Tax Facts make sure you are following us on Facebook

Click HERE for more Tax Facts and Financial News

Suggested Articles

Tax Fact: Filed 2019 Taxes?

Have you filed your 2019 taxes? Are you wondering where your tax refund is or how to find out? Whether you owe taxes or you're expecting a refund, you can find out your tax return's status by Using the IRS Where's My Refund tool. Calling the IRS at 1-800-829-1040...

Unemployment Changes for 2021

For many this tax season, the unemployment benefits seemed to challenge taxes and income brackets for many Americans. Policymakers have allowed filers to use 2019 EIC (earned income credit) since 2020 provided fewer opportunities for many; however, the American Rescue...

What is the American Families Plan?

Photo by Jessica Rockowitz on Unsplash What is the American Families Plan? New presidents bring new administrations and they bring new policies, budgets, and proposals. In May, the Biden administration revealed their 2022 budget for the fiscal year. The $6...

Social Security Updates 2025

We were talking about Medicare Changes for 2025 but let's continue and talk about Social Security Updates for 2025 Moving along with the changes for 2025 are the Social Security benefit changes. This change affects those who are on Supplemental Security Income (SSI)...

Tax Fact: About HSA

Tax Fact: Did you know that an HSA (health savings account) can provide some of the best tax-saving benefits? Contributions to an HSA can be deducted from your taxes. You'll need a qualifying high deductible health plan to be eligible to contribute to an HSA, though,...

Tax Fact: SBA Loans for suffering businesses

COVID-19 has caused such havoc in our Great Nation. With the request for us to quarantine and for businesses to close down temporarily or cut back on their hours, it has caused a huge amount of stress on business owners and employees. The U.S. Small Business...

Tax Season 2021: What you need to know

Tax season is upon us. And although no one wants to revisit 2020, you’re going to need to. Hopefully, your 2020 taxes are the only thing creeping into the new year from 2020. Each year, the tax laws change, but the Covid pandemic created additional changes you’ll need...

Tact Fact: Hobby Versus Business

Imagine if you could turn your favorite leisure activity into a successful business venture. Many Americans are now turning to what they love to earn income, whether it’s enough to quit their day job or just a fun way to cover the costs. If you are passionate about a...

Tax Fact: Financial Health?

What is Financial Health?Financial Health is a term used to describe the state of one's personal monetary affairs. There are many dimensions to financial health, including the amount of savings you have, how much you’re putting away for retirement, and how much of...

Taxpayers Beware: Scammers

As we approach the holiday season, scammers increase their attempts to steal, scam, and take your hard-earned money. More people are stressed out, easier to fool, and more likely to donate to charities. However, many new fraudulent charities pop up, hoping to convince...
Google
4.7
★★★★★
69 reviews