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Ok, Now I am ready! Bring it ON~
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bargainsmall
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PostPosted: Fri Jan 26, 2007 8:43 pm    Post subject: Reply with quote

LOL
That was good! Just do not run for President. That comment will not let you win. There is always a controversy about others coming to the states to take the american's dream job, but I do see a lot of incommers working the fields for very low wages anyway!
Good Luck to you on your site. I'll vote for you!
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MIZombie



Posts: 489

PostPosted: Fri Jan 26, 2007 8:58 pm    Post subject: Reply with quote

I could run for Prez by saying that if I was a Republican! I'll just say I believe in God and voting for the other party is a vote against God. Are you new to American politics??? lol

That is all you have to do. Our current leader has been saying since he got into office that outsourcing is good for the American economy! He says I am a protectionist because I believe American companies should be employing Americans! If that makes me a protectionist, so what, I am a protectionist! I could care less if he calls me that.

Ford Motor Company lost 12 billion dollars in `06 and foreign cars are going to out number domestic cars. I stated in another forum that is a sad day in the life of America. You know the answer I got? American made cars are junk and imports run for evvvvvvvvvvvvvvvvvvvva. I have not seen any statistics to back that up! I have know people with foreign cars that don't hold up. That is just what people say to justify them buying a foreign car and putting Americans out of work! Walmart accounts for I believe 15% of the trade Deficit with China. Last I knew it was 36 billion or some staggering amount.

America used to be built on sweat and hard work. Now it built on cheap imported garbage and taco bell drive thrus! I am sure if there was a way we could send service jobs over seas we would be doing it.

Zombie
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bargainsmall
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PostPosted: Fri Jan 26, 2007 9:25 pm    Post subject: Reply with quote

Sorry MI
I might be then new to politics eventhough I very often prefer not to get involved because it a very peronal topic and very seldom people reach agreement on the subject. I just made a bad joke for what I see. Therefore, I strongly appologize to you and any who might have gotten offended.
I work very hard for my money. Have done it all my life since I was 12. I do not care which party runs mostly because none come to my house to see if I need 2 more dollars to buy a can of formula.
And I am not a person who has come to America to take no ones job either.
Then again, myself and my husband have been in remoted areas making sure our children can enjoy this country's freedom. I am sure enjoying it now that I am not in the service under no president's command.
But I reassure you that no intentions of offending was in this head of mine. Thanks for the facts given, I do know the economical situation and I just pray for the better no matter who is in command as long is in benefit of Americans and not on themselves.
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bargainsmall
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PostPosted: Fri Jan 26, 2007 9:38 pm    Post subject: Reply with quote

By the way, I have 2 fords and 2 chevy's


BUILT THOUGH

AND

LIKE A ROCK
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MIZombie



Posts: 489

PostPosted: Fri Jan 26, 2007 10:04 pm    Post subject: Reply with quote

Oh rest assured I wasn't offended at all lol I meant it to be funny as well!

Good for you driving them Chevies, and well the Fords too!

I am in Michigan and it is sad to see the decline of the American made automobile in the name to save some money. The thing people buying them imports don't realize is, in fact it may be saving them money but the money spent goes to another land. I live in the birth place of the Automobile R.E. Olds - The Oldsmobile. Long live the Gutless Cutlass!

Zombie~
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bigtallmensclothing
moderator


Posts: 21854

PostPosted: Fri Jan 26, 2007 11:36 pm    Post subject: Reply with quote

I have been reading up on this FEIN - states that require it before issuing other license are doing it because - as I previously stated - you are required then to pay in to SOCIAL SECURITY.
You make an income and not you have to pay SOCIAL SECURITY on that income because you have an FEIN. That's money I like to keep in my pockets! Hell, paying the sales tax is cheaper then paying SS!
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MIZombie



Posts: 489

PostPosted: Fri Jan 26, 2007 11:44 pm    Post subject: Reply with quote

You still only pay what you have to pay when you file a Sched C and self employment taxes. You are only going to pay more if hire employs which most aren't so having the FEIN doesn't mean squat?

Z
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bigtallmensclothing
moderator


Posts: 21854

PostPosted: Sat Jan 27, 2007 1:37 am    Post subject: Reply with quote

MIZombie wrote:
You still only pay what you have to pay when you file a Sched C and self employment taxes. You are only going to pay more if hire employs which most aren't so having the FEIN doesn't mean squat?

Z


I suggest you double check. You never pay Social Security in with income tax on a schedule C. Social Security is normally paid half by the employer and half is deducted from your pay check. As the Sole Owner you might choice not to give yourself a pay check and actually have the business withhold taxes etc. BUT having a FEIN will require you to pay both the employee share and the employer share of Social security taxes into the Federal Government.
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MIZombie



Posts: 489

PostPosted: Sat Jan 27, 2007 7:21 am    Post subject: Reply with quote

Exactly!!!!!!!!! It is called Self Employment tax and you pay it with your income tax and you pay it with Schedule SE and on your 1040


What is Self-Employment Tax?

Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. It is similar to the social security and Medicare taxes withheld from the pay of most wage earners.

You figure SE tax yourself using Schedule SE (Form 1040). Social security and Medicare taxes of most wage earners are figured by their employers. Also you can deduct half of your SE tax in figuring your adjusted gross income. Wage earners cannot deduct social security and Medicare taxes.

SE tax rate. The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).


Who Must Pay Self-Employment Tax?

You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies.

* Your net earnings from self-employment (excluding church employee income ) were $400 or more.
* You had church employee income of $108.28 or more.

I do not see any place that has to do with a FEIN~ If you are self employed you will be paying SS tax whether or not you have a FEIN!



http://www.irs.gov/businesses/small/article/0,,id=98846,00.html#4
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bargainsmall
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PostPosted: Sat Jan 27, 2007 8:04 am    Post subject: Reply with quote

I re-read mine early this morning just to meka sure and it does not require me to pay SS if I am not an employee. Anyways, as my accounting is coming up, I have been loosing instead of profiting which is considered normal within the first year of a business.
That was good info MI. Thanks BT, By the way The signs might be going to the Blazer for a while. The minivan needs some professional TLC. You want me to share pics?
Some people were asking on other boards d cross promotion and maybe we can bring the subject back up, what do you think?
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jwautographs
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PostPosted: Sat Jan 27, 2007 8:56 am    Post subject: Reply with quote

If you are self-employed or making income you are REQUIRED to pay social security taxes on your income.

Unless you are hiding your income that is!
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bargainsmall
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PostPosted: Sat Jan 27, 2007 9:32 am    Post subject: Reply with quote

Sorry jw but I have to disagree with that At least in the State of FL yes, you have to pay taxes for your income if you report it and that is the idea behind the EIN but you do not have to be an employee in your company. I run an LLC and I am not an employee. I am the operations manager for the company and it is free of charge service I provide to the company. I do not have to pay SS for something I do for free. If you hire cntarctors, you can not tell them what to do, how to do it and they have to use their own tools. That is the definition of a contractor. You pay them for a service under contract and they pay their own fees to the government.
Very tricky but very vital to know the information.
We sell products and I get someone to do listings or take pictures and they use my computer and my camera, they are not contractors, they are your emplyees and the IRS is very strick on that. He does it for a year and you no longer need him. They go and try to collect unemplyoment, You bet you will get audited. Or lets say they get hurt while moving some boxed in your garage, You will get under the scope for not reporting to Work's comp.


Be right back with more on this
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jwautographs
Guest




PostPosted: Sat Jan 27, 2007 9:46 am    Post subject: Reply with quote

Whatever. You may be an owner who does not work for the company or accept wages. Maybe you subcontract everything out.

I'm just saying, as a small business owner, who makes their living from their business, I MUST PAY social security taxes on my income.

There are probably many ways to beat the system and I do not waste time trying to find a loophole. Not saying the way you do things is not legal. I'm sure it is.

If it works for you, go for it.


Last edited by jwautographs on Sat Jan 27, 2007 9:48 am; edited 1 time in total
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MIZombie



Posts: 489

PostPosted: Sat Jan 27, 2007 9:47 am    Post subject: Reply with quote

Yes but if you are SELF EMPLOYED with more than 400 dollars of income you will be paying SS and Medicare Tax whether you have FEIN or not. If there is a way to get out of paying SE Tax let me know because I see no way to do it! IF your filing a Schedule C and have more than 400 dollars income you will be filing a Schedule SE and paying SS and Medicare Tax, period! FEIN had nothing to do with whether or not you have to pay SET (self employment taxes)

FEIN and paying SS Taxes for self employment have nothing in common!
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bargainsmall
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PostPosted: Sat Jan 27, 2007 10:45 am    Post subject: Reply with quote

Determine who is an employee and who is a contractor

http://www.irs.gov/businesses/small/article/0,,id=98862,00.html

Quote:
It is critical that you, the employer, correctly determine whether the individuals providing services are employees or independent contractors. Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors.

Caution: If you incorrectly classify an employee as an independent contractor, you can be held liable for employment taxes for that worker, plus a penalty.

Who is an Independent Contractor?
A general rule is that you, the payer, have the right to control or direct only the result of the work done by an independent contractor, and not the means and methods of accomplishing the result.

Example: Vera Elm, an electrician, submitted a job estimate to a housing complex for electrical work at $16 per hour for 400 hours. She is to receive $1,280 every 2 weeks for the next 10 weeks. This is not considered payment by the hour. Even if she works more or less than 400 hours to complete the work, Vera Elm will receive $6,400. She also performs additional electrical installations under contracts with other companies, that she obtained through advertisements. Vera is an independent contractor.

How should I report payments made to independent contractors?

You may be required to file information returns to report certain types of payments made to independent contractors during the year. For example, you must file Form 1099-MISC, Miscellaneous Income, to report payments of $600 or more to persons not treated as employees (e.g. independent contractors) for services performed for your trade or business. For details about filing Form 1099 and for information about required electronic or magnetic media filing, refer to information returns.

Who is a Common-Law Employee (Employee)?
Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed.

To determine whether an individual is an employee or independent contractor under the common law, the relationship of the worker and the business must be examined. All evidence of control and independence must be considered. In an employee-independent contractor determination, all information that provides evidence of the degree of control and degree of independence must be considered.

Facts that provide evidence of the degree of control and independence fall into three categories: behavioral control, financial control, and the type of relationship of the parties. Refer to Publication 15-A, Employer's Supplemental Tax Guide for additional information.


Who is an Employee?
A general rule is that anyone who performs services for you is your employee if you can control what will be done and how it will be done.

Example: Donna Lee is a salesperson employed on a full-time basis by Bob Blue, an auto dealer. She works 6 days a week, and is on duty in Bob's showroom on certain assigned days and times. She appraises trade-ins, but her appraisals are subject to the sales manager's approval. Lists of prospective customers belong to the dealer. She has to develop leads and report results to the sales manager. Because of her experience, she requires only minimal assistance in closing and financing sales and in other phases of her work. She is paid a commission and is eligible for prizes and bonuses offered by Bob. Bob also pays the cost of health insurance and group-term life insurance for Donna. Donna is an employee of Bob Blue.

Statutory Employees
If workers are independent contractors under the common law rules, such workers may nevertheless be treated as employees by statute ( statutory employees ) for certain employment tax purposes if they fall within any one of the following four categories and meet the three conditions described under Social security and Medicare taxes , below.

A driver who distributes beverages (other than milk) or meat, vegetable, fruit, or bakery products; or who picks up and delivers laundry or dry cleaning, if the driver is your agent or is paid on commission.
A full-time life insurance sales agent whose principal business activity is selling life insurance or annuity contracts, or both, primarily for one life insurance company.
An individual who works at home on materials or goods that you supply and that must be returned to you or to a person you name, if you also furnish specifications for the work to be done.
A full-time traveling or city salesperson who works on your behalf and turns in orders to you from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similar establishments. The goods sold must be merchandise for resale or supplies for use in the buyer s business operation. The work performed for you must be the salesperson s principal business activity. Refer to the Salesperson section located in Publication 15-A, Employer s Supplemental Tax Guide for additional information.
Statutory Nonemployees
There are two categories of statutory nonemployees: direct sellers and licensed real estate agents. They are treated as self-employed for all Federal tax purposes, including income and employment taxes, if:

Substantially all payments for their services as direct sellers or real estate agents are directly related to sales or other output, rather than to the number of hours worked and
Their services are performed under a written contract providing that they will not be treated as employees for Federal tax purposes.
Refer to information on Direct Sellers located in Publication 15-A, Employer s Supplemental Tax Guide for additional information.

Misclassification of Employees

Consequences of treating an employee as an independent contractor. If you classify an employee as an independent contractor and you have no reasonable basis for doing so, you may be held liable for employment taxes for that worker. See Internal Revenue Code section 3509 for additional information.

Resources

Tax Topic 762 Basic Information
To determine whether a worker is an independent contractor or an employee, you must examine the relationship between the worker and the business. All evidence of control and independence in this relationship should be considered. The facts that provide this evidence fall into three categories Behavioral Control, Financial Control, and the Type of Relationship itself.
Publication 1976, Section 530 Employment Tax Relief Requirements (PDF)
Section 530 provides businesses with relief from Federal employment tax obligations if certain requirements are met.
IRS Internal Training: Employee/Independent Contractor (PDF)
This manual provides you with the tools to make correct determinations of worker classifications. It discusses facts that may indicate the existence of an independent contractor or an employer-employee relationship. This training manual is a guide and is not legally binding. If you would like the IRS to make the determination of worker status, please file IRS Form SS-8.
Form SS-8 (PDF)
Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding
Publication 15-A
The Employer's Supplemental Tax Guide has detailed guidance including information for specific industries.
Publication 15-B
The Employers Tax Guide to Fringe Benefits supplements Circular E (Pub. 15), Employer's Tax Guide, and Publication 15-A, Employer's Supplemental Tax Guide. It contains specialized and detailed information on the employment tax treatment of fringe benefits.
Online Classroom, Lesson 6 - What you need to know about federal taxes when hiring employees/contractors



Understanding your EIN

http://www.irs.gov/pub/irs-pdf/p1635.pdf

Small Business Online Classroom

http://www.irs.gov/businesses/small/article/0,,id=97726,00.html

I do not hide income. I am a "member" in a "partnership"

And I am not mad at anyone. The whole idea is for all to get the most accurate information from its source. I have been a bookkeeper for more than 6 years. I do not work on getting around for paying. That is a Tax Preparer's job. You should have determined what kind of legal structure you had use to develop your business and some rules apply to each individually to include liability. Meaning SP you are risking everything because you hold 100% liability. As a "C" Corporation, I keep my house and my american cars even if I loose the business. The personal assets I have work hard for will not go down a drain if my business goes down.

Love you all and proud that this is the most active and caring community in the internet.

That is my 5 cents for now
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