2007-08-31 07:31:39 · 6 answers · asked by wtesdahl 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Your question is not related to LLC for individuals.
Employer wants you to pay taxes instead of him means that employer wants you to work as a contractor (or on a contract job) and he does not wish to keep you as a regular employee.
As a contractor you will end up paying 7.65% more taxes. This also saves the employer of paying you other benefits that are given to the regular employees.
2007-08-31 09:14:02 · answer #1 · answered by MukatA 6 · 1⤊ 0⤋
When your employer wants you to pay payroll taxes, then you're no longer an employee. You are called a consultant. As a consultant, you're responsible for your own payroll taxes including the employer portion. As an employee, your federal payroll taxes is 7.65% for FICA and Medicare. As a consultant, your payroll taxes is 15.3%. However, this tax is based on net income after your business expenses such as telephone, office supplies, gas, car depreciation, etc. As a consultant, you don't have a set working schedule. Your employer can't demand that you show up at a certain hour or leave at a certain hour. But your employer can request that you be there around a certain hour and can be specific on meeting schedule. You should check with your accountant on some additional issues pertaining specifically to your situation. As a consultant, it is good to have a LLC. It limits the your liability exposure. Your personal assets are better protected. You may want to have business insurance depending on your industry. If you want to discuss more on this issue, feel free to email me.
2007-08-31 14:46:30 · answer #2 · answered by Matrixcm 3 · 0⤊ 0⤋
May or may not be legal - there are rules, employer can't just decide any and all employees are now independent contractors. Assuming it's OK, your expenses will go up, so you should be paid more for same work.
If the IC setup is proper, then a corp may be a better choice than an LLC, depending on numerous factors - consult your biz attorney and accountant.
2007-08-31 19:41:32 · answer #3 · answered by heart_and_troll 5 · 0⤊ 0⤋
Since you are an employee, there is no option. Your employer MUST withhold taxes from your wages and MUST pay his payroll taxes. Therefore it is NOT a question of pro and con. The law is the law and that's that!
2007-08-31 15:52:20 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
The IRS will have a say in whether you are a "independent contractor". If the employer controls the work hours, workplace, and how you do the work, then you aren't.
2007-08-31 14:39:49 · answer #5 · answered by antagonist 4 · 1⤊ 1⤋
Your employer is not obligated to withhold your taxes. You are. It's a convience they provide their employees.
2007-08-31 17:14:03 · answer #6 · answered by D Guru 3 · 0⤊ 2⤋