Would you rather get paid $25 dollars an hour working for someone or $35 an hour but you are your own business

Question

By that I mean the work is the same. Your hours are the same, everything is the same except you have to file a 1099 no thats not right, well I dont know you have to file a different tax form out at the end of the year and you get taxed a lot more. You also would have to get a tax ID number, what else am I missing??? Oh and when you are your own business I am assuming you have to pay for your own health insurance, so if the $25 dollar an hour job already paid 100% of that, I dont know I cant deciede. Which is better?

Answer 1

The first option. ESPECIALLY if insurance comes with it. Buying your own insurance is crazy-expensive.

If you are self-employed -You don't need a tax ID number - you just use your SS number. You would file your income on a schedule C.

Answer 2

So that is $25/hr before taxes right? The taxes may be different rates for your own business but you still had to pay out of that $25 and with your own business you should have more deductions. It shouldn't end up being too much more. I would ask a CPA for a consultation so you could discuss the specifics of it. For insurance: How much is insurance for self-employed? if you make $10/hr more for a 40 hr week that is $400/week more or roughly $1,600/month or $20,800 more per year. I doubt insurance would cost anywhere close to that. So the first thing you should do is consult a CPA or tax attorney and find out how much you will have to pay out for taxes and Social Security, then find out how much you will have to pay out for insurance. Deduct that from what you will be making. Now compare your projected adjusted income to your current adjusted income (after subtracting current taxes and SS.) And don't forget to deduct any expenses from either such as office supplies from your own business to gas expenses commuting to your current job. Another thing to consider is, is that $35/hr GUARANTEED? Are your hours guaranteed? Do you have a chance for advancement at your current job? How about for your own business, would you be able to grow with it? Also compare the work itself. Is the X amount extra money and freedom of being your own boss worth the X amount extra work and X amount of extra risk. I know you say the work is the same but there is always a difference when you are the boss and have no one else to turn to if something goes wrong or if things change. There is also always going to be more paperwork when you are in charge. Good luck!

Answer 3

I say go with owning your own business. It will be difficult at times, but you make the decisions ultimately. If you are having trouble finding health insurance, do what most businesses do and pass the cost to the consumer. Also, shop around for insurance to keep the rates low. As for the other benefits of working for someone else (i.e. vacation and holiday pay) these will depend on how you are at managing your workload. Also, don't forget about the tax deductions you would be able to file at the end of the year. They would allow you make up for some of those "lost" benefits.

There are drawbacks to every job. That is why it is called work because no one likes to do it. If everyone liked it, it would be called vacation or play time.

Answer 4

I believe you will be better off with the $25 an hour job. Here's why...

With your $25 an hour job you are actually making more then that because your insurance is being paid 100%.

I don't know what type of business this is, but what would your monthly expenses be if you started your own business? Rent, phone, advertising, utilites, insurance (health and business), licenses, inventory, equipment, etc.

Also, being self employed you will have to pay an extra 7.65% of your income in taxes (you will have to pay both the employer's part and employee's part of Medicare and Social Security).

Answer 5

In the long run, you are far better off working for yourself. What everyone has failed to consider here, is that you don't have a cap on your salary in business, so you can always earn more.
I have a home business in health and wellness, and health care and taxes are the least of my worries. If you really apply yourself to your home business, you will blow that $25/hr out of the water in no time, and you actually WANT tax issues, because that means you are earning an excellent income!

Answer 6

do the $25 per hour
a business owner
for that ten spot it aint worth it if it was double the wage i would go for it then it would with all the write offs
try buying a house whoa last 5 yrs of tax returns at 35 per hour wont get it because it will work out to about 10 per hour on tax forms and you work long long hours

Answer 7

It all depends on your overhead. Add up all your monthly business expenses and divide it by the number of hours you plan to work a month. If the answer is less than $10 (the difference between $25 and $35), then yes, you will earn more money working for yourself. Personally, I would be willing to make less money and have the freedom of working for myself

Answer 8

you only do a 1099 if your not a corporation, if you are a subcontracter for someone and you are in cooperated, they can not do a 1099 on you, then can only list you under your fed ID number, if you can make $35 a hour and you own your own business you should be able to get the same health ins also...

Answer 9

It sounds like not a match made in heaven right? I would make sure if you pull out of her life, you explain it in the same way you brought all this up to perfect strangers who have nothing vested in your life but opinions. The time line doesn't work for you and the love is substituted for economic losses and kids born later with health issues because of it. Either you need to discuss more or the final word about all of this came right before this question on answers. Two different paths from two different people is more like ideas or goals. Let her know all of this if you deciding to get out of her life. She is entitled to an additional responses and comments further to you at least. That much you can do........

Answer 10

It doesn't sound like you have put much thought into being a small business owner. I say take the $25/hour job. Learn about being a small business, and push for has much control of your new job as possible. Make sure you are involved in the decision making process, of your duties, as much as possible. That will lead to job security.

Good luck