Hi Victoria
Having just finished my year end books I did some calculations on what I paid in taxes/benefits to have the pleasure of being a small business owner with 2 full time & 2 part time employees.
Here are my stats and I believe they are very similar to most under 10 person businesses
Gross sales 525K
Total personal income to be reported on my 1040 (S-corp status ) $80k
If I were to add the payroll & benefit burden (22,500) from the business expenses to my income that would make my income $102,500
Then deduct the payroll burden of 22.5 and the personal taxes I will pay on the 80k reported on my 104 of about 20k in taxes, it puts me at a 40% tax rate
That is absurd. I am better off to close my business and work solo from home.
I am seriously thinking of doing this do the detriment of my employees.
I think we need a certified accounting of small businesses true tax burden like mine and publish that information. Who can we get to do that?
Ready to spit nails
Bill
Tell ’em where you saw it. Http://www.victoriataft.com
