Skip to main content

View Diary: My soon-to-be unpopular diary on Cadillac insurance (110 comments)

Comment Preferences

  •  I may look into that stitch, but self-employeds (3+ / 0-)

    pay enormous taxes because, again, as a freelance contractor, before ANY money gets removed from the tax pile, EVERY dollar has FICA siphoned off. The government doesn't care about a home office or healthcare when it is calculating FICA. It looks over at my gross income and says, "What's 15% of that? O.k. Now because he's self-employed, we'll give him back a PERCENTAGE of the employee's half as a kick-back." But they aren't looking at the little "after all adjustments to income" pile when they're raking off FICA.

    •  I know (1+ / 0-)
      Recommended by:
      Kitsap River

      my family members are all accountants and my dad and my sister have been self-employed, and I hear the same thing from my sister. When I consider opening a private practice it's something I think about, too. It's a huge part of overhead.

      I said SSI above, I meant FICA, btw. SSI is what you get, not what you put in. My bad.

      Diversity may be the hardest thing for a society to live with, and perhaps the most dangerous thing for a society to be without - W S Coffin

      by stitchmd on Sun Jul 26, 2009 at 03:26:52 PM PDT

      [ Parent ]

    •  You need to get some better tax advice (2+ / 0-)
      Recommended by:
      Kitsap River, steve davis

      I own an S-corp.  Which is not a big deal to manage.

      My business partner and I both get a paycheck.  The company pays half the FICA and we pay half of our own FICA.  However, this is just an accounting thing, because basically the company provides all the money to pay for all of it - it's just that only half of it appears on our paycheck as if we paid it.  And naturally, to us, the company paying for it really means we are paying for it.  It is not true that an employee only pays half of their total FICA - it comes out of the total compensation amount that the company allocated for that employee.

      But we also take profit out of the company, and as long as your salary is within reason, you are not charged FICA on your profits.

Subscribe or Donate to support Daily Kos.

  • Recommended (148)
  • Community (68)
  • Elections (34)
  • Media (33)
  • Trans-Pacific Partnership (31)
  • Environment (30)
  • 2016 (29)
  • Culture (29)
  • Law (29)
  • Civil Rights (28)
  • Barack Obama (25)
  • Science (25)
  • Hillary Clinton (24)
  • Climate Change (23)
  • Republicans (23)
  • Labor (23)
  • Economy (20)
  • Marriage Equality (19)
  • Josh Duggar (19)
  • Jeb Bush (18)
  • Click here for the mobile view of the site