is being held until I agree to sign a waiver releasing my employer his obligation to pay my state, federal, and payroll taxes. In other words allowing him to change my status to independent contractor. I’m not willing to do that because he hasn’t even come close to paying me my full salary. I was hired with as an employee to a small business with an offer letter in January for which I have the documentation. My paychecks, since being hired in January, reflected a tax deduction, but none were ever paid to the government. Now, in order to receive my final paycheck he is demanding I sign a waiver and is only willing to pay me 10 of the 19 days owed. Obviously this is illegal on many levels so what do I do to expedite the process?

The owner of the company, is single and has no dependents. He uses the ,350 standard deduction in computing taxable income for 2007. The personal exemption amount for 2007 is ,400. This is his only source of income. Compute after-tax income if:

a. the company is a sole proprietorship, and the owner withdraws ,000 for living expenses during the year.

b. the company is a corporation, the owner is the sole shareholder, and the corporation pays out all of its after-tax income as a dividend to the owner.

c. the company is a corporation, the owner is the sole shareholder, and the corporation pays the owner a salary of ,950. This will increase the corporation’s business expenses to 9,950.

In 2005 I loaned money personally to a Canadian business and lost all of it (the company went bankrupt before it could repay the loan). At that time I was employed full time in another job (and still am today). My question is are there any deductions I can make for the money I lost on that investment from the regular income I make? It seems totally unfair that I have to pay so much income tax now based on my salary when in fact I LOST so much money in my investment.

How do i figure this problem out.

Charlene Langhorst’s gross weekly salary is 0. Her federal withholding is 1.62. The Social Security tax is 6.2 percent of the first ,000. The Medicare tax is 1.45 percent of gross pay. The state tax is 1.5 percent of gross pay. Each week she pays .40 for medical insurance. What are her total deductions?

Thank you

Right now we have one of the highest if not the highest taxes on corporations in the world. As a result jobs and companies are leaving at a high rate. Even smaller companies (like the one I work for) are looking to send the work they do outside of the USA. What can the US Government do to reverse this trend?

I’ve a novel plan that should satisfy almost everyone. Before you say it’s pure BS think about it. No corporate taxes at all. Over seas companies would be moving here, and in droves. And no federal taxes other than personal income taxes. I know your first thoughts are that can’t possible work. But it can. I’ll explain how.

Corporations are in business to make money period. If they don’t they don’t stay in business. But although they want to make money that also don’t want a lot of money lying around doing nothing. They want it working as well. So they put it to work. They renovate, renew, or rebuild their facilities. The purchase new equipment, update older equipment, retool, and other things like that. All these things means the money keeps moving. And when money moves someone makes a profit. Sooner or later all that money will end up with individuals in some shape, form, or fashion.

HERE is where the taxes come in. Any salary, wage, commision, or benefit given to an individual is subject to being taxed. And here’s where you start. If someone is living above the poverty line thay will pay some tax. How much will they pay depends on how far above the poverty line they are. No flat tax, but a graduated tax with no upper limit. It make no sense to tax someone making K at the same rate as someone who makes M a year. Democrats are always saying they ony want to increase taxes on the uber-rich while lowering the taxes on the lower and middle class people. Here’s their chance. I’ll leave it to the statisticians and mathmaticians to figure out how fast the percentage curve rises.

And here’s another thing that will make it work. All the loopholes in the present tax code will cease to exist. The only things you would be allowed to deduct would be for each member of the household(plus on additional deduction for special needs cases) and family health insurance. But other than that NO DEDUCTIONS.

This years US Budget was about Trillion (that’s 12 zeros) to provide for every man, woman, and child, legal and illegal (about 300M) living in the USA. You do the math, I could have made a mistake. But doesn’t that figure out to be about K each? I don’t know about you but I’m not sure I got my K worth of services out of the Federal Government. How much of that was eaten up in buracracy. But that is an whole ball of worms. Let individuals pay all the taxes. What’s wrong with that idea?
G-gal- If you ask me this is about as fair as tax can get. A flat tax or sales tax hits really hard on the people that can least afford it. 10% tax on someone just over the poverty line knocks them back below the poverty line. 10% tax on someone who makes millions or billions and they never even notice it.
E-smile. Under my idea there would be no advantage to play fast and loose with the companies books. Creative financing goes out the window. Companies only do that to avoid taxes.

OH, and under my system before anyone claims a loss they have to actually lose something. Paper loses don’t count!
To all of you who said it wouldn’t work. If’ I’ve replied to you via E-mail I hope I answered your questions. To all of those I didn’t reply to– Shame on you for not allowing the discussion to continue because YOU wouldn’t allow E-mail.

I did some work for a small start up business in 2007. The first few months they paid me a monthly amount and told me they were deducting social security and witholding tax. After a few months I was asked to be a consultant and they would pay me a gross figure. I thought this was OK at the time.

It now looks like they did not know what they were doing. They paid me net but did not pay the deductions to the social security or the IRS. They paid me gross for the time I was called a "consultant".

This all came to light when I asked them when I would get my W2 for the first few months so I could get ahead on my fed tax return.They are trying to work out what they should do and have asked me to help them through this problem. I like the people and the work but they need to sort this mess out.

What should I suggest to they do to put everything right? I am flexible and want to carry on working but I dont want me or them to have a problem with the IRS or social security.
The start up company is a Delaware LLC. The owner does not take any salary (as far as I am aware). But he will take all the profits. I dont know how he will deal with company tax return.

We really are very small only 4 people and we only started this venture just about a year ago.

The owner bought the LLC off the shelf as a shell company. He finds customers overseas and we give advice in our specialist areas. He is good at finding customers so work has been continuous which is great.

The customers pay the LLC before we travel and he pays us our consulting fee and keeps the rest.

Its going well so I dont want to rock the boat and I have a lot of freedom, travel and more work than I had before. And he is a good payer …always on time.

I think this issue is just because we are not business people.

I want to make sure I dont have a problem with the IRS but I also want the company to carry on so minimising any penalties is one of my objectives.

1-24 is what percent of 40?

2-sandra’s monthly salary is ,200. if deductions for taxes from her monthly paycheck are 0, what percent of her salary goes to these deductions?

3-the cost of an article including 15% for taxes is 8.00. what is the cost of the article without taxes?

1-24 is what percent of 40?

2-sandra’s monthly salary is ,200. if deductions for taxes from her monthly paycheck are 0, what percent of her salary goes to these deductions?

3-the cost of an article including 15% for taxes is 8.00. what is the cost of the article without taxes?

I want to be considered as a co-owner with my bf’s business. We have not filed any 1099′s but will suffer penalties if we must. I want to claim that I paid myself a salary of 27k which is just enough to cover my mortgage and car note. I am doing this so that I can claim the interest paid on my mortgage (in my name only) as well as a few other deductions such as medical. I also want to receive the stimulus rebate for me and my daughter. Is this tax fraud? What are potential problems? I DO in fact work with my husband on the business. We both make business decisions. We just never really formally "paid" me for my work.
Sorry. We are engaged and have been engaged for a year. And dating for 6. So I just started calling him hubby. for tax purposes, he is my bf.

Why is everyone saying I didn’t work? I DID work, I still DO work for the business. We are just trying to figure out the technicalities of the IRS. In fact, this business was started 3 years ago with a large chunk of my money as well. It just gets complicated because we never defined my position. I guess I am answering my own question. I know I worked for the business, so I guess I know it’s not fraud. But how do I prove that to the IRS? All my work is for nothing because we never filed a 1099? We can’t be the only business in the world that forgot to issue a 1099. What is it? Like a fine?

One part of Obama’s new economic stimulus idea is that businesses get a ,000 tax deduction for each new employee they hire.

ANYONE who has been or is in business for themselves know this is really stupid. New staff is hired because the business requires another person and when the income can pay this persons salary. Why in the world would any business owner hire on someone the company doesn’t need, for say ,000 a year just for a ,000 tax cut? This is just plain ignorance on Obama’s behalf.

The second part of his stimulus idea is to put money into upgrading, rebuilding, etc. our infrastructure, bridges, roads, etc.

Obama is obviously extremely out of touch because what do you see when you drive by construction sites? Illegals of course. They’re on the street corner waiting for that pickup to pull up and hire them for the day. Obama is ignorant to what real America is like. This plan of his will send money to Mexico, it will do NOTHING for our economy.

Seriously, is Obama this stupid and out of touch with reality?