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

Reasons to Consider Out-of-State Municipal Bonds

Municipal bonds (also known as munis) are issued by a state or local government. Interest income is typically paid out twice a year and is not subject to federal taxes. When an investor purchases a bond issued from his own state, the income is generally not subject to...

Tax Planning 2024

Personal Income Tax Planning Strategies for Year-End 2024 As 2024 draws to a close, it’s the perfect time to review your personal income tax situation and implement strategies to minimize your tax liability for the year. Proactive year-end tax planning can lead to...

Deepfake Detection in Voice and Video

Deepfakes are becoming more convincing than ever. Whether manipulated media or entirely generated by artificial intelligence (AI), deepfakes can now realistically alter faces and clone voices. They can even fabricate entire scenarios across video, audio, and text....

National Security

Improving Federal Building Security Act of 2024 (S 3613) – The Federal Protective Service (FPS) contracts security guards to control access to government facilities and screen visitors to detect prohibited items, such as pepper spray and batons. Earlier...

Dissecting Bookings and Annual Recurring Revenue

With the number of Amazon Prime member subscribers growing from 58 million in 2016 to 180 million in 2024, according to Statista, there's a sustained recurring subscription model that one of America's most successful retailers has increased more than 200 percent in...

Calculating the CAC Payback Period

The CAC Payback Period looks at how a business needs to recover its investment in attracting new customers. It is especially crucial for companies that are in industries with large marketing and sales costs. It’s an important metric because it helps businesses...

As Tax Season Opens, We Must Stay Alert to Rising Scam Threats

As tax filing season begins, scammers are ramping up efforts to steal taxpayers' personal information through increasingly sophisticated schemes. Below, we discuss the latest scam, what to look out for in general, and what to do if you suspect something malicious.New...

Dissecting the Half-Year Convention for Depreciation

Depreciation can help a business realize tax benefits, maintain compliance with financial reporting requirements, and project asset replacement. The half-year convention for depreciation is an important practice to understand.For fixed assets, depreciation is...

7 Ways to Teach Your Kids to Save

Of all the things you teach your kids when they’re young, saving money just might be one of the most important. Teaching them to delay gratification could help them avoid unnecessary spending and help them learn to value controlling their money. Here are some...

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,...