As an independent contractor, you pay more in social security and medicare costs than you would if your were working for a corporation. The reason for this is that when you work for company, they are required to pay part of the above-mentioned taxes. As an independent contractor, you have to pay 12.4% of your income for Social Security and another 2.9% for Medicare for a total of 15.3%. This can cut into your profits and decrease your tax return when tax season rolls around.
22 June 2015
It's more than just crunching numbers. Accountants really help people to manage their finances in ways that help them sleep better at night -- read on to see some of the major things that accounting companies do for individual clients and companies. Financial Organization Part of the nightmare of finances is simply keeping everything organized. You get pieces of paper in the mail and they get stuffed into folders or inboxes that quickly fill up.
16 June 2015
A small business balance sheet statement provides you a snapshot of your company's financial status. This statement summarizes the company's assets and liabilities to arrive at a net worth. Understanding what each section of the statement includes and how all of the sections work together will help you build solid financial statements. Here's a look at what you should know before building a balance sheet for your company. Section 1 – Assets
15 June 2015
Retirement planning involves being able to set a target amount of money to live on—a hard thing to figure out with all of today's uncertainties. One big part of the puzzle is how much you will be paying in taxes on retirement money. Fortunately, there are some ways to understand how your taxes will change in retirement. And much of it is for the better. What You Won't Pay First, there's some good news for retirees: disappearing taxes.
10 June 2015
Are you in a high income bracket? Perhaps you are in a lower income bracket, but you may find yourself with a tax bill each year because you do not have enough deductions. There are a few things you can do to lower your tax liability. Read on to learn four popular options others use to lower theirs. Invest in Your Retirement If your employer offers a 401 (k) plan, take advantage of it.
21 November 2014
Working as an independent contractor allows you to be your own boss, which can be very fulfilling, but it also leaves you responsible for filling your own taxes. When filing your taxes as an independent contractor, it is important to make sure that you file for every possible deduction that you can. Believe it or not, there are many deductions that many independent contractors do not take because they do not even know that they are available.
14 August 2014