The joys of being self-employed

[byhammerandhand]

http://www.marketwatch.com/story/the-high-price-of-being-self-employed-2015-06-29?link=sfmw_fb

I'd add to this, monthly, quarterly, and annual accounting and tax filing.

[sofadoc]

OR..... you could work for someone else and get paid half your value.

[byhammerandhand]

When I was in corporate world, we figured the fully loaded cost of an employee was twice their salary.   Covers taxes, benefits, insurance, work space, other resources (computer, phone, etc.), management/corporate overhead, training, travel expenses, vacation/holiday/sick leave, etc.    So by that measure, yeah, it's about right.

We did have to buy our own coffee, though.

[sofadoc]

I used to work at an aerospace plant. My salary was $10 hr. The company billed the government $100 hr. for my services. But then, they were also charging them 10 bucks for a paper clip too.

[Darren Henry]

When Canada adopted the CF18 aircraft , part of the package was the special tools required to service them. One such item was a "special" screwdriver for $700.00.  When they showed up the handles read "Mastercraft", which is Canadian Tire's house brand of cheap tools. I don't know if that same screwdriver ,today, would cost $7.00.

[Mike]

so why do I work ? 
this statement " Retirees, for their part, don't pay the payroll tax, because they don't have earned income." really get me.  they talk about how social security is in trouble yet a friend of mine and uneducated unskilled  trucker .   will reture soon and collect from his union over 4 grand a month when hes 62, he sill say he has earned this money from his job. then he will also be able to collect SS 1000? a month. on top of the 4 plus grand. a person collection ss payment id reduced if they earn a small amout of money that the 4k a month will easily be more , my point is this is money that he earnt at his job and he didn't received the money while he was workin and put it in the bank he gets paid after he is done working. he has said that he will get more money once he retires then he does now driving., then he plans to het a local job (that someelse could use) until hes 65 and qualifies for full SS. I think anyone getting a pension from a job should be treated as anyone on SS who works and makes too much money and is taxed.

just my pet peve  jealouse yes why did I work for someone else   

[gene]

You guys are so negative. There is nothing better than self employment!

I'll list the many advantages of self employment sometime later. I had a long day today and I'm really tired. I've got to get up early tomorrow and do it all over again.   :)

gene

[brmax]

Rock on Gene
As a devout pensioner somethings wrong because I pay taxes on mine both fed and state.
There's something good about not laying in tar working on diesel road building trucks though, or racing out to fix a truck in the ice roads and getting some heat n coffee to an op. So so many not fun task not to mention crews of well paid workers, engineers, waiting on some issue.
Its cool to hang out with you all here and will have to until age 67 I think it is for full ss.?
I should of drove a truck though with that other fellas income, hmmh I thought I was sharp as tac ??

[byhammerandhand]

I happen to know that Gene only works half days.    He usually gets started about 8 am, takes 30 minutes each for lunch and dinner and wraps up at 9 pm, so that's 12 hours, half a day.  He sometimes slacks off and only works 5 or 6 hours on Sundays, too.   (Sound familiar, anyone?)

You guys are so negative. There is nothing better than self employment!

I'll list the many advantages of self employment sometime later. I had a long day today and I'm really tired. I've got to get up early tomorrow and do it all over again.   :)

gene

[gene]

You've got that right, Keth.

When my customers ask why my prices are so low, I tell them that I'm so busy working I don't have the time to raise my prices.  :)

gene

[kodydog]

All good points Hammer. Most working slobs have no idea the burden placed on business owners. All they know is we have money coming out of our shorts so tax the hell out of us.

This article only touches the tip of the iceberg. Add in property tax. Taxes on gas for our vehicles. Heavy taxes on utilities. Have you ever noticed the communication tax on your cell phone? And if you live long enough to sell the property your business sits on you'll be taxed at about 28% capital gains.

Add in the burden of time and expense it takes to collect sales tax for the state. It really adds up.

And don't get me started on the minimum wage burden and matching SS tax placed on employers.

he has said that he will get more money once he retires then he does now driving.,

My Dad worked for the state and my mom was a school teacher. They both worked hard and socked away the max into their state provided retirement program. They earned more money in retirement then while working.

My sister is a double dipper. She works for the state in Tallahassee. After 20 years she retired and the very next day went back to work for the state. She gets her retirement and a full time salary.

[Mojo]

I always wanted to be self employed and owned numerous part time businesses. But my main job which I retired from was working for a municipal utility company. I am extremely glad I did as I have blue chip prescription, medical and dental benefits for the rest of my life. If I croak off my wife carries those benefits onward for the rest of her life.

Consider my prescription costs run well over $ 4 K a month when I am on chemo. My medical bills are astronomical as well. Thankfully everything is paid for including my Doctor visits. I would hate to think how bad we would be right now financially if I would have been self employed all my adult life.

How do self employed business owners do it in regards to medical, dental and prescription insurance ? Do all of you have insurance ? What are the costs as I do not have a clue ?

Chris

[baileyuph]

Then, to add; at the end of the day (or at night), there is the paper work that has to be processed.  I can spend considerable time keeping this function going.

Maybe we all go work for the government, retire then do this at a reduced rate in our garage ------- for cash!

Why...........believe this, I have customers who swear I am doing it all wrong, I should only work for cash!  Some of them have a government retirement from something and work for cash, taking the easy jobs only - leaving the harder jobs to someone who has to work.

Now, this talk about minimum wage, add the lastest noise about overtime pay.

Is this the next country to go by way of the Greece path?  Our debt has been growing, where is it now, 18 Trillion?  

Sorry,

Oh, Mojo the medical insurance, that is where the rest of my money goes and it doesn't cover dental.  I guess I don't have time to get sick, who would pay the bills?  Thankful, for good health.


Doyle

[SteveA]

How do self employed business owners do it in regards to medical, dental and prescription insurance ? Do all of you have insurance ? What are the costs as I do not have a clue ?


My Wife and I are covered under the exchange - costs me $ 400.00 per month after the subsidies they allow me. Co-pay  $ 10,000 out of pocket before they pay anything except for a yearly physical.  No dental no eye coverage.  The plan supposedly limits the fees doctors can charge but I'm still out of pocket
$ 10,000 up front.
The plan limits the doctors I can see and I need a referral for everything.  This has turned out much much worse then the plan I previously had.  From what I read health care companies have no limits when raising their prices under the ACA plans- I hope it gets better now that were 60 and need care more then our younger days. I'm going to see if a higher premium will lower the out of pocket at the next anniversary date of the policy. 

SA

[sofadoc]

I don't know how small shop owners can afford all the expenses that go along with having employees. I know that some of you are succeeding, but I wouldn't want to try.

My wife takes care of all our insurance benefits with her job. She started out as a bank teller, and has worked her way up the food chain. She now makes a pretty nice salary with some really nice quarterly bonuses.

I've always operated on the theory "Don't own a business unless you are prepared to FULLY run it yourself". Because if you depend on employees to run it, it is inevitable that the day will eventually come when they let you down.

I'm impressed to hear how Paul and Chris have found dependable employees. It almost restores my faith in humanity (almost).

But the way my business is currently set up, I don't see how I could afford to pay any employees a salary that would make us both happy. And benefits? Forget it.