Posted by ME/NJ on 10/22/13 10:27am
Msg #489086

Now that things have slowed for me

I have found a PT job in a week, done most of current to do list and now have reached the point of the jobs I really don't want to do..lol I have 2 signings but not till tonight so bored its driving me nuts.

Reply by bagger on 10/22/13 11:09am
Msg #489098

Mike, are you a corporation?

If you were, you could have laid yourself off, and be collecting unemployment.
If not, you should be able to sustain a short term down turn.

Reply by ME/NJ on 10/22/13 11:21am
Msg #489102

Re: Mike, are you a corporation?

I am a LLC, but a couple of things. I would need to pay myself a paycheck and pay taxes twice and all related with holdings. Two in NJ if you own the company or LLC and pay into unemployment as a owner you cannot collect. (They know if you could game the system) For tax reason a LLC works better because all income is personal and no need to give myself a paycheck.

What hurts me is Social Security- My est SS payment is 1200 when and if I can retire, my wife is 2100. Very important to invest in 401Ks, Roths.

As a S corp you are taxed twice, once by payroll and once every quarter by money in accounts (depending on how you do accounting - I do cash on hand )

If you pay yourself a payroll you will have to pony up an additional 10% tax for the employee and other withholdings to cover the owners share.