Tax Fact: Employee or My Own Boss
Alakov469

Should I be an employee or be my own boss? Everyone needs income to live and support their family. 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.

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 Tips 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: Payroll Tax Cut 2020

I am sure a lot of us have questions about the Payroll Tax cut President Trump signed into executive order..... and How much will it save you? One of the executive orders (actually an executive "memorandum") suspends the collection of Social Security payroll taxes...

Basics of Small Business Accounting:

There are lots of different reasons to be here, but we’re sure learning more of the basics of small business accounting is a great start! If you’re reading this, you’ve probably considered opening up your very own business. Or maybe you’re interested in learning more...

Tax Fact: Stimulus Checks Sent Out + Tax Deadline

Stimulus checks are being sent out, the tax deadline has been extended to July 15th and here are some other bits of financial help that I want to pass along 401K and IRA withdraw penalty suspended: People under 59 1/2 years old can temporarily withdraw up to $100.000...

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...

CFOs Can Help You Reach Your Business Goals

A new year means a new way of doing things. Whether you’re a small or large business, we can help take care of you! Businesses can create new year’s resolutions as well. A Chief Financial Officer (CFO) can help you get your business goals and resolutions in line. CFOs...

Tax Fact: Changes to HSA and IRA

Tax Fact: The end of the year is coming up on us fast and that means that tax season is right around the corner. There have been some changes to HSA and IRA contributions. HSA: Contribution limit (employer + employee): 2020: Self-only: $3,550 Family: $7,1002019:...

Small Business Expenses

We’ve previously discussed HERE the startup of a business, so here’s the continuation of more things to track your expenses with your small business. And trust us, you’ll appreciate doing this now, rather than later.  Different types of Business Expenses Business...

Tax Fact: Financial Tips

It's Tax Fact Tuesday!I We would like to share with you some financial tips... some you may have never thought of......When is a good time to focus on your financial health? I am going to say... NOW Get paid what you're worth and spend less than you earn. That may...

Medicare Changes 2025

We sure hope this year is filled with blessings and wonderful opportunities. That being said, let’s roll right into some changes with this new year. As the cost of living has increased these last few years, the government is making a few adjustments. Let’s discuss the...

Tax Fact: Money Fun Facts

Today here are some "mOneY fUn FaCts" Did you know that a penny costs more to manufacture than it's worth? It costs the government roughly $0.02 to make a single penny! Did you know that the secret designs on the $1 bill link it to the original 13 colonies? If you...
Google
4.7
★★★★★
69 reviews