I've been working that way for years and here's the deal: your hourly wage is tax withheld at whatever rate you report on your W-2. The 'bonus' is taxable at the 'maximum rate', as prescribed by the IRS. This is around 30%. Your employer is required to match your Social Security deductions for the hourly wage, and that adds up quick weekly across the board. The less your hourly rate, the less you benefit from SSI, Unemployment,Disability etc. Now your employer may tell you he's helping you by paying the minimum hourly wage- he may even tell you he does it so that you get more of your money each week due to a higher bonus. But at the end of the year you will be on the hook for 30%, so watch out. What you want is around $25/hr., well maybe $15 for cable (you want to be paid at least 60% hourly) and claim 0 or 1 on your w-2. This will up the weekly deductions and will wind up not owing, not lying or even net a return. Otherwise, you may as well 'exempt' your withholding and pay it like a contractor would- except you dont get the option of quarterly filing.
If you're going to start working this way, talk to your accountant- if you dont have one, get one 'cause your gonna need it. Otherwise you stand to lose a lot in the form of taxes owed or misssed returns. Minimum wage is never any good, but its always better than not working at all, so good luck. Speaking of which, cableguyswfl- you find any action down there? LA is still crankin by the way.
Re: Green Bean
Member #: 59436
Registered: 5/25/2008
Posted:
333
Name:
J. Zoll
Name:
J. Zoll
Location:
Naples
Personal:
mid 40s
Experience:
~24 years
There is 1 reply to this message
