Posted on 01/31/2014 10:52:55 AM PST by GarthVader
Eight different taxes. That’s what I had to compute every time I wrote a paycheck back when I was running a small business on the side. Eight taxes: •Federal income tax •State income tax •Federal unemployment tax •State unemployment tax •Medicare – employer’s portion •Medicare – employee’s portion •FICA – employer’s portion •FICA – employee’s portion
At least I “only” had to send the payments to four different government agencies.
...
Yes, the governments provided some nice hefty books. The IRS provided a 67 page two column guide. My state’s employer guide was only 59 pages. Keep in mind that these were just for the purpose of computing and delivering withholding taxes. The (sole proprietorship) business itself had its own tax guides – for income, FICA, Medicare, and sales taxes.
I think I spent more time dealing with government paperwork/payments than my part time employee spent working for the business. I definitely would have better off doing the work myself, save that I wanted to do the experiment. Jobless people take note.
For full time business owners with full time employees, this overhead is a smaller fraction of doing business, but it is still a significant headache. A big corporation like Wal-Mart can hire specialists to handle payroll headaches. The really big ones can optimize the process and even have their own specialized software designed. For a Mom and Pop business, or a small startup, these headaches occupy the owner(s). Keep this in mind all ye anti-Wal-Mart/buy local lefties. All this government-imposed overhead gives the big corporations an advantage over locally owned businesses.
And in the case of computing payroll taxes, it is all very unnecessary!
(Excerpt) Read more at financeandfreedom.org ...
hire a payroll company, that way when there are mistakes you can blame them. and there will be mistakes. big ones
JOBS. Now.
The best small business is where you are the only employee. The rest don’t exist because they are paid under the table.
FairTax
The 16th amendment is repealed as part of the legislation.
a reinstated the day after the scam is passed.
The prebate is another entitlement check.
The fairscam provides for the GOVERNMENT to determine was is or is not a family.
Mandatory regisration to recieve your living prebate.
Mandatory registration to prove you don’t have to pay the national sales tax.
current irs is replace with NuIRS.
This scam is dead and should stay dead.
There are so many other better flat tax concepts. Perhaps all should include a ballanced budget amendment.
Nice cheerleading. Completely without a plan. But nice.
Just havin’ some fun. I lifted the sloganeering from someone you might know.
I took payroll accounting years ago and it was an eye opener about the absurd laws and regulations.
Everyone should have to take a class like that but that might open too many eyes and minds.
I can guess who. But when he posts it, it’s usually in support of specific actions.
I can guess who. But when he posts it, it’s usually in support of specific actions.
Oh, really. LOL
Exactly.
The worst one I’ve heard recently is that we can’t put the annual salary on offer letters. If we put the annual salary on the offer letter and then let the person go for any reasons then we are still on the hook for the full years salary.
Until they get caught not paying taxes and tell the IRS they were your employee.
Guess who gets to pay all the taxes then?
I would like a fair tax but I think a flat tax is more doable. You cannot repeal an amendment(16th) through legislation. It has to be done through the process spelled out in Article V of the Constitution.
Haven’t heard that one but it wouldn’t surprise me.
We went to employee leasing for the medical insurance. They made us change the offer letters.
Federally Chartered Small Business
- To qualify for FCSB status requires gross sales of under 50 million dollars (create something similar for the next category up.)
- An FCSB withholds 20% of employee salaries and remits to the Treasury to cover all payroll tax liabilities. No further assessments by the IRS are allowed.
- An FCSB remits 5% Federal Sales Tax on all transactions, which is in turn disbursed to the state in which the FCSB operates. Neither state nor local taxes may be levied on an FCSB's sales, nor may the tax remitted be retained by the Federal Government for any other purposes (I know, this is a tough one...maybe FedEx should collect and process the money, instead...)
- An FCSB pays 10% corporate tax on any net profit. No "fishing" audits nor assessments by the IRS are permitted without enough proof of wrongdoing to file criminal charges and obtain a warrant from a Federal judge.
- An FCSB must meet general Federal guidelines for its type of activity and zoning (i.e., no chicken farms next to Macy's at an indoor mall).
- An FCSB is subject to a limited set of EPA/OSHA/ADA rules, not to exceed ten total pages of regulations.
- An FCSB is exempt from all other state and local laws governing business operations.
- An FCSB is not subject to state and local minimum wage laws. The Federal minimum wage for FCSB employees is set at $5/hour.
- An FCSB is a Right to Work entity, and all employment is At Will.
Stops the creeping Communism (as well as the even worse state and local tax corruption) in its tracks.
Not sure that your idea is either politically feasible or constitutional. If a business is truly small, it is probably intrastate. Federal charter and intrastate is a bit of a contradiction.
And it probably takes more than 10 pages of regulations for businesses which involve dangerous materials. Accountability through liability is a great replacement for regulations involving money and property damage. Doesn’t work so well for dead people or malformed babies.
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