By Tom Breedlove
Most candidates we work with are fearful of payroll taxes. They automatically assume it will mean less money in their pocket. Therefore, they allow their employer to pay them “under the table.”
But the truth is that being paid professionally provides numerous short-term and long-term benefits — the important benefits that all other U.S. professionals enjoy. Below are examples of how professional pay pays off.
And by using the paycheck calculator link (top right), you’ll know what to ask for in order to get the take-home pay you need.
If you have any questions, feel free to call Breedlove & Associates at 888-273-3356 or visit www.breedlove-online.com.
What Every Employee Needs to Know
Being paid like a professional has many immediate and long-term benefits. Here are a few:
As a professional, you should feel empowered to discuss professional compensation and benefits with your employer. If they pay you professionally, they’ll receive significant tax breaks and you’ll receive the benefits you so richly deserve.
So don’t think of it as a tax burden. Think of it as an investment in your financial freedom.
If You Are A Temporary Employee
If a family pays you less than $1,600 (2008) in a calendar year (January – December), the family is not required to withhold or remit taxes on your behalf. That means at the end of each tax year you will be responsible for reporting your wages from each family and paying any applicable income taxes. Since the families you work for are likely to include your wages as a tax deduction, the IRS will have a record of your income. So, to prevent an expensive audit, be sure to keep accurate records of your income from each family and set aside 10-12% of your pay so you won’t have any worries when taxes are due.