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!

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