Submitted by Sam Tresler (not verified) on Wed, 2008-04-16 23:55.
How is this the flip side? Perhaps the biggest hump in being a small business is switching from 1099 contractors to w-2 employees. You get nailed for whatever taxes you would normally need to pay as joe citizen, plus the self employment tax, then the company has to pay part of the employees tax. I’ve ben on the cusp of it a couple of times and this ‘bonus’ keeps a lot of small businesses down. I have seen it put more than one small business under.
Don’t get me wrong, I am formally employed now; my self employment from last year was the first 4 months of the year. But I still don’t necessarily agree with the ‘stick it to the business’ mentality that our tax structure takes all to often. It kills small business and fosters big business. Incidentally, this is my biggest beef with most health care plans. Whilst I’m all for health care, most plans try to stick it to the employer, and frankly that’s a death knell for entrepreneurs.
How is this the flip side?
How is this the flip side? Perhaps the biggest hump in being a small business is switching from 1099 contractors to w-2 employees. You get nailed for whatever taxes you would normally need to pay as joe citizen, plus the self employment tax, then the company has to pay part of the employees tax. I’ve ben on the cusp of it a couple of times and this ‘bonus’ keeps a lot of small businesses down. I have seen it put more than one small business under.
Don’t get me wrong, I am formally employed now; my self employment from last year was the first 4 months of the year. But I still don’t necessarily agree with the ‘stick it to the business’ mentality that our tax structure takes all to often. It kills small business and fosters big business. Incidentally, this is my biggest beef with most health care plans. Whilst I’m all for health care, most plans try to stick it to the employer, and frankly that’s a death knell for entrepreneurs.