Taxes

[labdude]

Anybody here care to discuss issues and info???
I know very little about emplyee taxes and withholdings anymore.I haven't had an empolyee, since 1991.
I do remember that I had to withhold something like 13+ percent for the feds, then make an employer contribution ( they called it) of that same amount.
The after that, came my income, which again was taxed at the same rates.
If I remember correctly, you had to have to have various types of insurance as well.
Any info here I know would be helpful to those that are just getting ready to hire that first employee. Part time or otherwise.
What a pain this stuff was. I lived in California at the time. I had to collect sales tax down there, and do the paper work etc, then send the money. No compenstaion for that!! Sucks!!
Mike.

[TheLabGuy]

Americans For Fair Taxation:

[trisha]

Sorry Mike, I am of no help, never hired an employee and don't plan on it.

[labdude]

Hi Rob,
O.K.
But... the new guys need guidence, maybe. I think maybe calling your local IRS office is a good start.
Non compliance isn't a realistic option. They (IRS) will clean your clock.
Mike.

[labdude]

Hi Trisha,
Come on...contribute to the growing economy!! Make that tax base larger!!
There are many foreign countries that need your dollars.
Mike.

[TheLabGuy]

Better to take all your money you'd pay yourself and put it into stocks, then take out the money from the stocks when you need money. Stock taxes (Capital gain taxes) are at 15 percent., When you add withholding, payroll, unemployment, health care, 401, and every other damn deduction out of your paycheck out there, it's easily over 35 percent of your pay, much worse than 15 percent. Doesn't really help you if you have a employee, not a bad idea for a single owner lab though. This is what Warren Buffet was complaining about, his secretary pays more taxes than he does......well duh, she pays 35 percent, he pays 15 percent.

[Brian8]

I have my brother how owns a CPA firm figure all the crap out for me...find a CPA office and they can tell you.

Brian

[TheLabGuy]

Yep, that's the best way. As the old saying goes, once you find these 3 types of people you can trust, hang on to them...... CPA, MD, and Car Mechanic.

[trisha]

Better to take all your money you'd pay yourself and put it into stocks, then take out the money from the stocks when you need money.

Ya still have to pay taxes on the money before you invest it. Unless you put it in a traditional Roth and that is just put off the inevitable, your still gonna have to pay the piper eventually.
What I can suggest to the new business folks is to set up a Simple IRA and Roth IRA and always always pay yourself first. A financial advisor or an accountant can help you set this up or you could probably get the paper work yourself.
trisha

[TheLabGuy]

Isn't a Roth IRA max 2,000 per year, it used to be?

[magushnik]

taxes are bull, irs is bull, federal reserve is bull... that is all i have no answer to your question just my own rants...

[trisha]

you can contribute up to $5000 in 2008 and $6000 for those 50 & over. A great way to supplement your retirement with some tax free withdrawals. It has been rising pretty steadily since its inception about 10 years ago. I hope people are taking advantage of this, since we lab owners don't have any built in pension or 401ks probably. That is what the SEP/SIMPLE is for.
trisha