Business Tax Preparation Service Business Articles | July 9 Clint Dempsey USA Jersey , 2015 Having a Business Tax Preparation Service has a lot to do with saving business owners money on their taxes. Self Employment Tax is one of the major issues that we deal with as a Business Tax Preparati...
Having a Business Tax Preparation Service has a lot to do with saving business owners money on their taxes. Self Employment Tax is one of the major issues that we deal with as a Business Tax Preparation Service. The problem is that it is so expensive in lower and middle income brackets. Self employment tax is basically both sides of social security and medicare tax combined. Whether you are a sole proprietor or a partner in a partnership, you have probably discovered just how expensive this tax on the self employed can be. ? Why are self-employment taxes so expensive? ? Let’s illustrate this with an example. You are filling a Married Filing Joint Return as a sole proprietor. After all of your deductions on the Schedule C, you are left with $100,000 in taxable income. You do not itemize or have any other deductions or credits. Your total income tax on the 2014 return is $9 Claudio Reyna USA Jersey ,986 while the self-employment tax is another $14,130. If you are a partner in a general partnership, an LLC, or an LLP Christian Pulisic USA Jersey , your taxation costs are not the same but very similar. ? Why is the self employment tax more expensive than the income tax? Because SE Tax is a flat percentage rather than a graduated tax with brackets and deductions. First, the couple is not paying income tax on the entire $100,000 because they get a credit for half of the self employment tax as well as the standard deduction and two exemptions. They are only paying income tax on $72,635. The income tax rate starts at 10% and goes up 15%. Tax for Self Employed is a flat tax with no standard deductions or exemptions. This is why it can be more expensive. ? In many instances Chris Wondolowski USA Jersey , this can create a a tax problem that over years can ultimately put a person out of business. ? What can be done to solve this problem? ? Changing the taxation status of your entity may do the trick. I didn’t say that you had to change the entity. Your legal status does not necessarily dictate how you file your taxes. You can be an LLC from a legal standpoint that is taxed as an S-Corp. Why would you consider being an S-Corp? There are no self-employment taxes on S-Corp Income. Certainly you would need to take a salary that was reasonable and pay Social Security and Medicare taxes on your W-2. But in most instances, that W-2 might be much less than the entire income of the business, therefore saving you substantial amounts of self employment tax. ? Tax Planning for Small Businesses ? Your Small Business Accountant needs to have these conversations with you. Saving clients money on their taxes does not just happen. It is a matter of planning and knowledge. In many instances, saving clients money on their taxes is what allows them to stay in business in the first place. ? If you are having problems with your Business Tax Preparation Service or have issues with your accounting in general Chris Pontius USA Jersey , we would love to help. I love hearing from my readers, and can be contacted at ? Chris@ ? Additional Accounting Articles and information on my firm can be found at ?
?
In a highly competitive business, even a strong market position cannot be held or improved with mediocre people. It takes the best people, continually giving their best Brek Shea USA Jersey , to attain challenging but achievable goals. It takes people with superior education, training, and experience who are interested in maintaining the initiative in the face of carefully calculated business risks to stay on top of the competitive heap.
It takes people with pride in workmanship who carefully apply their skills and disciplines to produce a marketable product of fine competitive quality on time and within carefully controlled costs. It takes first-line supervisors who are very much aware of the influence they have over their people and who by their example influence them to do their jobs more effectively.
It takes a healthy, profitable company to engage in public service activities. This takes managers with superior skills who recognize and take advantage of opportunities while keeping the wheels turning Brad Guzan USA Jersey , the costs down, and the profits up.
It takes broad-gauged managers who see beyond the four walls of their offices to initiate social change and do so profitably, instead of merely reacting to change. It takes managers with special skills in communication, organization Brad Evans USA Jersey , selection, utilization, motivation, and manpower development to make business plans become realities.
In short Brad Davis USA Jersey , the bigger the job to be done, the higher the caliber of person who must be hired to do the job and the more complex and challenging the task of managing him and providing the climate and the environment within which he will put forth his best efforts. Whatever the objective, the human resource is the key factor in its attainment.
Identification and solution of management problems is another responsibility of the human resources executive. One of the prerequisites of the human resources executive is to recognize those causes and provide operating management with the tools to reduce the effects or eliminate the conditions that detract from an organization ability to achieve its goals.
Hilfe Engel - Forum
Thema drucken
04.01.2020 08:13
Antworten
