Paying about a 3rd of our income in taxes causes so many problems

[MamaMia]

Its the route of many problems actually, for our society as a whole. In my case it prevents me from being able to hire a back up employee to have extra, for people who don't show up to work for sometimes very good reasons, like a sick child. We can barely function if even one person takes off. :(

[TopDaugIn2000]

yeah, I'd have money if I didn't give the gubment so damn much. :mad:

[1stTimeCaller]

you guys are looking at it the wrong way.

[TexasSooner01]

I dont like paying uncle sam during the year either. But the return check is always welcomed in my household!!

[1stTimeCaller]

uh oh

[Vaevictis]

You might want to talk to your accountant; there's no reason that I know of that a properly structured business should be unable to hire another employee due to income tax burden.

(EDIT: Unless your reasoning is that if your employees didn't have to pay income taxes, you'd be able to keep the difference.)

[Veritas]

What's wrong with you Mama? You should rejoice at the opportunity to hand the money that you earn over to the government so that they can waste it on social programs. ;)

[VeeJay]

New and exciting:

1. Carbon Tax
2. Property Transfer Tax

Get ready to pay more, you wealthy bastuds.

[MamaMia]

You might want to talk to your accountant; there's no reason that I know of that a properly structured business should be unable to hire another employee due to income tax burden.

(EDIT: Unless your reasoning is that if your employees didn't have to pay income taxes, you'd be able to keep the difference.) Thats an idea. I'll call her this afternoon and ask her what she thinks. I dont understand any of that, which is why I have her.

[OUDoc]

New and exciting:

1. Carbon Tax
2. Property Transfer Tax

Get ready to pay more, you wealthy bastuds.
But I don't own any carbon! ;)

[1stTimeCaller]

I always give the IRS a tip.

Just like when you pay for a meal you tip the waitress, I tip the IRS.

;)

isn't that what these people that think we should pay more taxes should do?

[yermom]

are you suggesting a use tax would be better?

i guess i don't really understand what is going on here

[skycat]

are you suggesting a use tax would be better?

i guess i don't really understand what is going on here

National sales tax!!!

[yermom]

i'm not sure what you do about the secondary market that seems like it would explode at that point

[MamaMia]

I don't understand it all but it just seems like when you pay your taxes, you cant deduct the income you pay the people who work for you because the government needs to give your money to the people who don't work at all. :confused:

I wouldn't mind giving my money to help people who cant work. Its giving it to people who just don't work that I mind.

[Frozen Sooner]

Now, I'm not an accountant or a tax lawyer or anything, but I'm relatively sure that no matter how your business is set up that wages paid to employees absolutely can be deducted from your income.

[Okla-homey]

I dont like paying uncle sam during the year either. But the return check is always welcomed in my household!!

Thinking like that got us into this mess.

Think about what you're saying. It's generally analagous to thanking the crook who broke in and stole a bunch of your stuff who, in a good-natured moment, kept most of his plunder but returned to the scene of the crime and left your TV for you on your front porch.

The point is, that return is your money. It was when they took it, and it's still yours when they return it to you. IOW, there are better "savings accounts" than shipping cash off to the IRS who never pays a cent of interest on your "deposit."

[mdklatt]

because the government needs to provide all the services people demand even though we're not willing to pay for them


Fixed.

[MamaMia]

Now, I'm not an accountant or a tax lawyer or anything, but I'm relatively sure that no matter how your business is set up that wages paid to employees absolutely can be deducted from your income.I don't think the money we pay people is deducted. I called my accountant and she said that she would email me some information on how much more it would cost us "personally", out of our own take home money, to hire an extra employee to sit around and do nothing just in case someone doesn't show up, so it either costs something or else I need a new accountant. :(

[mdklatt]

I called my accountant and she said that she would email me some information on how much more it would cost us "personally", out of our own take home money, to hire an extra employee


As the business owner, hiring an additional employee is going to cost you "personally" no matter what. That's not the fault of the IRS....

:confused:

[1stTimeCaller]

duductions just mean that you don't pay taxes on the $20,000 you pay your employee.

basically.

[Vaevictis]

I don't think the money we pay people is deducted.

If your accountant is competent at all, then it should be. Businesses get taxed on net income (income - expenses), and wages go into the expenses line.


I called my accountant and she said that she would email me some information on how much more it would cost us "personally", out of our own take home money, to hire an extra employee to sit around and do nothing just in case someone doesn't show up, so it either costs something or else I need a new accountant. :(

Well, what you're describing there is not the same thing as being unable to hire someone due to tax burden. No matter what the tax rate, whenever a company hires someone, their salary always comes out of the pockets of the owners of the company.

[Veritas]

I don't think the money we pay people is deducted. I called my accountant and she said that she would email me some information on how much more it would cost us "personally", out of our own take home money, to hire an extra employee to sit around and do nothing just in case someone doesn't show up, so it either costs something or else I need a new accountant. :(
You deduct what you pay people from your gross income, and you're taxed on the remainder. You don't deduct what you pay people from your tax due balance, although that would be nice.

Taxes aren't probably the issue here; the issue is that your net income isn't high enough to sustain the expenditure associated with another employee.

[frankensooner]

You could always call a temp agency to help cover on the days when you are short, and that is a business expense.

[Okla-homey]

You could always call a temp agency to help cover on the days when you are short, and that is a business expense.

in Woodward?:D

[frankensooner]

well, you never know. http://woodwardok.expresspersonnel.com/contact.aspx

[1stTimeCaller]

I don't think any of you clowns know what you're talking about.

[MamaMia]

well, you never know. http://woodwardok.expresspersonnel.com/contact.aspxThe job is too complex for the untrained. We tried the temp agency in the beginning just to have someone help answer the phones, but all the girls we got either smelled bad or had lots of tatoos and pierced body parts.

[OUDoc]

I don't think any of you clowns know what you're talking about.
Welcome to the South Oval, stranger.

[frankensooner]

Ewwwww, well, it was worth a shot. Do you know any retired ladies from church who might fill in when you feel the pinch? They might work pretty cheap and you know they might be pretty bored.

[OUDoc]

Ewwwww, well, it was worth a shot. Do you know any retired ladies from church who might fill in when you feel the pinch? They might work pretty cheap and you know they might be pretty bored.
You talking to 1TC or MamaMia?

[MamaMia]

Ewwwww, well, it was worth a shot. Do you know any retired ladies from church who might fill in when you feel the pinch? They might work pretty cheap and you know they might be pretty bored.I haven't been going to mass since football season started. :O

[Vaevictis]

I might also take a shot at substitute teachers.

[frankensooner]

You talking to 1TC or MamaMia?
Stormchaser.

[Frozen Sooner]

Mama, do you really think it makes great business sense to hire someone just to sit around on the off chance you have someone call in sick?

[MamaMia]

Mama, do you really think it makes great business sense to hire someone just to sit around on the off chance you have someone call in sick?No, but I have a habit of hiring people who take off a lot. :O

[bonkuba]

I feel your pain Mama..... I too own a business.....two tire dealerships.

I believe the point that most are missing here is simply this. When you (we) hire an employee there is a burden to hiring that employee (as anyone in business knows). Obviously the cost of the employee (hourly or salary), the processing fee (if you use an agency)........then you get to pay taxes again....even though the employee pays taxes, we are lucky enough to have to pay taxes again on the employee. Lucky us and see all the good our $$s are doing???:mad:

Anyway, sorry for the rant....back to normal now.:D

[StoopTroup]

I haven't been going to mass since football season started. :O
That's probably why your in the blame mode your in...;)

BTW...how much do they pay you to sit around and complain on SFs.com...:D

:pop:

[1stTimeCaller]

I feel your pain Mama..... I too own a business.....two tire dealerships.

I believe the point that most are missing here is simply this. When you (we) hire an employee there is a burden to hiring that employee (as anyone in business knows). Obviously the cost of the employee (hourly or salary), the processing fee (if you use an agency)........then you get to pay taxes again....even though the employee pays taxes, we are lucky enough to have to pay taxes again on the employee. Lucky us and see all the good our $$s are doing???:mad:

Anyway, sorry for the rant....back to normal now.:D

what about the part where you make a net profit off of the employee? That has to be better than the labor burden you pay to have that employee, doesn't it?

[Veritas]

what about the part where you make a net profit off of the employee? That has to be better than the labor burden you pay to have that employee, doesn't it?
You don't own your own business, do you.

[soonersweetie]

Thinking like that got us into this mess.

Think about what you're saying. It's generally analagous to thanking the crook who broke in and stole a bunch of your stuff who, in a good-natured moment, kept most of his plunder but returned to the scene of the crime and left your TV for you on your front porch.

The point is, that return is your money. It was when they took it, and it's still yours when they return it to you. IOW, there are better "savings accounts" than shipping cash off to the IRS who never pays a cent of interest on your "deposit."

very well stated and I agree.

[1stTimeCaller]

As a matter of fact I do own a small business.

I guess you could always not hire an employee if it costs too much. Right?

;)

[Vaevictis]

I don't think that anyone is missing the point that there's a burden to hiring an employee.

I think what everyone is pointing out is that that burden is not really influenced either way by income tax.

(Of course, unless you wish to take the point of view that if your employees didn't have to pay income taxes, the business would be able to keep the difference.)

[MamaMia]

That's probably why your in the blame mode your in...;)

BTW...how much do they pay you to sit around and complain on SFs.com...:D

:pop:
Today I'm calling insurance companies on claims that are over 90 days old, to see why they haven't paid, so I'm on hold a lot.

Oh and I'll have you know that I had my blame modes even before football season started. :P

Hows about you come help me? :D

[1stTimeCaller]

ooh ooh. I should also point out that my small business is a for profit type of company if that helps!!!

[MamaMia]

I don't think that anyone is missing the point that there's a burden to hiring an employee.

I think what everyone is pointing out is that that burden is not really influenced either way by income tax.

(Of course, unless you wish to take the point of view that if your employees didn't have to pay income taxes, the business would be able to keep the difference.)
What I do know is that I could hire 3 or 4 well paid employees with what I have to pay in taxes.

[1stTimeCaller]

if you don't generate any income you don't have to pay any taxes!!!


What's the old saying; A man with tax problems doesn't have any real problems.

[Veritas]

What I do know is that I could hire 3 or 4 well paid employees with what I have to pay in taxes.
Sounds like you need a shadier accountant. :texan:

[1stTimeCaller]

get your customers to pay cash!!!

[StoopTroup]

Today I'm calling insurance companies on claims that are over 90 days old, to to see why they haven't paid, so I'm on hold a lot.

Oh and Ill have you know that I had my blame modes even before football season started. :P

Hows about you come help me? :D
I actually used to do just what your doing for my Father and Uncle while I was going to College...so with a little instruction I could probably clear your desk off in a week depending on the load.

Insurance Companies are teh suc.

I feel for you...truth is they are the ones costing you dough by not paying the claims you send in.

Hang in there.

[SleestakSooner]

This thread makes me wonder what the benefits package looks like while working for OUr favorite Woodward dentist's office.

[SoonerJack]

I have an idea. So you got no joy from the Temp agencies (if there are any in Woodard [as my FIL pronounces it]). I'm assuming there are other dentists in Woodward? And that those dentists have a similar issue with needed occasional help? Why not meet with them over onion rings and say, "know what, if we all went together and found someone awesome to fill in, that would be pretty cool."

Or, if you do hire someone full time, 'stead of letting her sit around, put her in a tooth suit out front of the office and drum up some bidness. Or, have her start calling the deadbeats who haven't paid on time.

Or, talk to a local vo-tech and see if they have any interest in an internship type deal where you get a motivated employee and they get a place to put a potential graduate.

YWIA.

SoonerJack

[Vaevictis]

What I do know is that I could hire 3 or 4 well paid employees with what I have to pay in taxes.

If you didn't have to pay those taxes, AND all other things remained equal, you'd be pocketing that money, and if you did decide to hire another employee, it'd still come out of your pocket. ;)

(... and the fact is, all other things would likely not remain equal. Market forces would likely eat up most of that excess profit in short order, and you'd be back in the same boat pretty quick.)

[mdklatt]

As a matter of fact I do own a small business.



You switched jobs again?

[1stTimeCaller]

No.