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

Improving Military Benefits, Relaxing Energy Regulations and Increasing Aviation Regulations

Veterans’ Compensation Cost-of-Living Adjustment Act of 2025 (S 2392) – This Act was introduced by Sen. Jerry Moran (R-KS) on July 23. It passed in the Senate on Nov. 9, the House on Nov. 17, and was signed into law on Nov. 25. The purpose of this bill is...

Tax Breaks Continued for 2021

As we talked earlier this month about the new Unemployment and Tax Break changes for the year 2021, we continue looking into more tax breaks for this year. The American Rescue Plan also extended the initial CARES act unemployment benefits. The new plan extended the...

Tax Fact: Stimulus Check

With the talk about the stimulus check, we all have many questions. One of the things I have read is if you haven't had your 2018 or 2019 taxes done get them done as soon as possible. They are going to base your check amount on your tax return. If you have received a...

Student Loan Relief Package

Loan Relief Photo by MD Duran on Unsplas With 2020 being a pandemic year, the government understood that many individuals lost their jobs and couldn’t make payments to their loans. So they created a student loan relief package. Last time we talked about the Low Down...

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...

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...

Tax Needs: Startup Businesses

StartUp Business Photo by Jud Mackrill on Unsplash Entrepreneurs across America believe in the beauty of starting their own businesses. However, the startup and the taxes often cause people to stop in their tracks. Don’t fret! We want you to excel and...

2021 Tax Guide

Here at Red Rock Tax we have created a Tax Guide to help guide you through the 2021 Tax Season We discussed the changes of this year’s taxes, but now let’s chat about all the documents you should bring with you to make your tax appointment seamless and easier. We can...

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...
Google
4.7
★★★★★
69 reviews