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Do you pay for Health Benefits....and what about retirement funds?
No bene's. No retirement funds.
the 15% you save in taxes being paid 1099 vs w2 will easily cover the bene's and retirement funds.
Bene's and retirement funds are just another was of the MAN holding people down. I don't do that. Personally, I would much rather have a company give ME all the money possible as opposed to tying me down with bene's. That way I can invest them myself at much higher rates of return and with less risk.
Look at it like this, if you are self-employed (my salespeople) then you pay your own health insurance (tax dedcution). Also by being paid 1099 vs. w2 you are able to contribute to a SEP-Ira (self-employment-retirement) as well as a traditional or roth-ira like a w2-employee.
Traditional and Roth ira's a w2-employee is capped at about 4k max contribution. This is the same being paid 1099 however you also can contribute up to 25% of you income with a cap of 42k in pre-tax dollars. This is just one of the reasons it sux to be an employee and the governmet rewards business owners.
Personally, this year I will contribute 42k to my SEP ira but I cannot contribute to a roth or traditional because i make over 160k/year. I will then use the money from my sep ira and put it with a holding institution (equity trust) that allows me to self-direct it. I will use the money to loan to somebody to stop their foreclosure and I will charge them 5 points plus 14.5% interest on a five year loan. Each monthly payment received from the borrower will then be re-deposited into my SEP-ira so that I pay no taxes on the interest earned.
For all of you nay-sayers.............Your response is expected, I hear it everyday. The fact is, 95% of the country is broke or barely getting by so I would expect 19/20 people to recite the familiar saying "if it sounds to good to be true", ad nauseam, etc, etc.
And no, I do not "charge" anyone anything to work for me. The only expense one would incur would be potentially moving expenses and definately some basic office supplies, ie, headset, folders, pens, paper, etc. I cannot buy these things for someone because that would violate the laws pertaining to individuals being paid 1099, I could only purchase these things for someone if they were an employee. In otherwords, if you were local, you would need to invest a grand total of about 200-300 dollars to get started.
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