the more they make they more they take..

[Mikey P]

My Son works on hourly or commission, which ever is higher for the day. ($18 an hour or 20%)
The IRS dings the hell out of his check when he gets to a certain $ point.

His plea of "why do I even bother hustling when they take any extra I make?" goes unanswered.


I recall my days at Coit with the same frustration, the 6th day I would work each week bumped me into the next tax bracket and all was lost from that day's efforts.


Got any ideas around it besides cash bonuses? (which we can't deduct)

 

[joe harper]

Yes I do... LIKE!

Make Davis an officer in your corporation....
Pay him a low base salary...with a commision on outside sales...

This will allow him to have DEDUCTION'S to offset his "commissioned" INCOME... :idea:

 

[Art Kelley]

Just explain to him that the extra money they take out does not necessarily mean it's gone forever. To the IRS those weekly checks bouncing him to higher brackets look like that's how much he makes the whole year which as we all know is not the case. His real tax bracket is how much he makes over 52 weeks. He will get back a large refund when he files next year.

 

[joe harper]

Many ... LEGAL ways to off-set his tax burdens...

Because he is your family member..you can GIFT many perk's ..which are otherwise Taxable..

Since ..$$$$..is not an option for YOU... KMA!

Increase his benefits.."deduction's for you"....
And lower his "take home pay" smaller tax liability for him....





OR... :idea:

We could FIRE the lil bAstUrDs...OR...pay them min wage....what they are worth when they are WhInInG about making to much money...

 

[Ken Snow]

Cold also put him on a fixed salary for the year and give him a bonus on last check of year taxed at 20%. Another way is to hold back some on big checks and pay out on more modest ones.

 

[smoothrider]

Pretty sure the IRS takes a percentage of income rather than fixed amounts. So if he makes above a certain amount he'll get deducted with a slightly higher portion. This is simply a matter of not being educated about the IRS system. I used to work in sales before and a guy I used to work with commented how the HMRC (UK tax) takes away 20% of his income so he "works one day for free". So he wasn't going to come to work for one day and phone in sick. LOL

I didn't say anything, more sales for me

 

[Desk Jockey]

Make Davis an officer in your corporation....

I like Harp's idea but there is some risk should Davis marry. You then gain another partner you hadn't planned on. Should they ever divorce she owns a piece of your company. I've seen Jimmy naked

You could give him a smaller percentage of the corp but when dividends are declared it is supposed to be distributed equally.

 

[joe harper]

Make Davis an officer in your corporation....

I like Harp's idea but there is some risk should Davis marry. You then gain another partner you hadn't planned on. Should they ever divorce she owns a piece of your company. I've seen Jimmy naked

You could give him a smaller percentage of the corp but when dividends are declared it is supposed to be distributed equally.

Richard,

Davis can be made an officer of the corporation...."With NO stock being issued." :idea:
It is a position ONLY...No equity in company...or voting rights... LIKE!

As long as Mike ....maintains 51 % of VOTING STOCK....he maintains TOTAL control...!

ps ..I would hope the corporation is a .."SUB/S"

 

[Ken Snow]

Beat me to it Joe. I was an officer in our company before I had any stock. I am also an officer and Board Chairman in a company I consult an I have no ownership, or even employment status. I am 1099'd for this consultancy/chairmanship.

Mike I assume we are not talking about a lot of dollars (the spread) here so don't make it too complicated for yourself.

 

[joe harper]

There are a lot of different ways to skin the cat.. :idea:

What ever you decide...RUN IT BY YOUR CPA... :!:

Because Davis is a family member....you have more "wiggle room" than most.!

 

[Brian R]

Have them start an Energy Choice business and write off ALL the things they use every day like gas, cell phones, cable, internet etc.


Yes, I'm serious. They could possibly get all their taxes back and it would only cost them $499 upfront.....Which you could help them with.

Even if they never do anything with it other than get paid on their own services..The tax write off will help.


Plus, it would make you an ETT and you would start getting those bonuses that I keep telling you you're missing out on.


Call me.

916-295-4460

 

[Ken Snow]

They live at home and have no expenses.

 

[Brian R]

They live at home and have no expenses.

You know better than that. There are ALWAYS expenses. LIKE!

 

[FB7777]

g]http://www.youtube.com/watch?v=rCZRqH7sRyAg]

 

[Brian R]

Fred, call me and I'll tell you what a write-off is. eat shit!

 

[daniel@procarpet]

Why not let your son get a business license and make him a subcontractor?

He could knock tons of stuff off and basically break even.

Good or not?

 

[joe harper]

Because ...if he ONLY does Mikes work...HE IS NOT A LEGAL SUB... -sniff

 

[Mikey P]

there is no "they", its one son. Davis.

and he lives with his GF in an apartment.


and the IRS would laugh at him trying to write off all that stuff on a virtual biz with no "down line"

 

[Ken Snow]

He would also have to pay 100% of his Soc Security then, rather than half.

 

[XTREME1]

What he could do is change his exemption status and put a little away each week and just PAY the taxes at the end of the year instead of waiting on a large return

 

[Desk Jockey]

Joe you and Ken areright of course. I don't know what I was thinking. My wife gets a Sam's share and yet she owns no stock in Sam's Club. yes, I really clean up pet shit for a living Dad..

 

[Brian R]

and the IRS would laugh at him trying to write off all that stuff on a virtual biz with no "down line"

I've been doing it for years.... Just ask Harpo.

You don't need a downline for it to be a biz... Just if you want to make a ton of money.

 

[Cameron1]

As an officer of the corp. you could give him a gas card and cell phone. Just lower his salary by the same amount. As a bonus, send him on a weeks paid vacation....then offset the bonus against his pay. The list goes on and on..

 

[bensurdi]

This is the kind of stuff that I need to learn more about! SAVING on taxes.

 

[Ken Snow]

He doesn't need to be an officer to have a gas card and cell phone, nor does having them make their use deductible.

 

[rhino1]

My payroll service gives us the option of cutting a second check for bonuses/commissions which also allows us to withhold taxes at a different rate and reduces our tax liability as well- from what I understand.

Also, you could pay a daily perdiem- in this state it used to be tax free. We used to get $30 a day in the construction biz.



You also could just give him the cash you tightwad. He is your son you know.

 

[Brian R]

Or you could just pay them more. When you make enough money, suddenly taxes aren't as big of a deal.


But they really should start some kind of a small business. Anyone with a 9 to 5er needs to have something on the side if not only for tax purposes.


This can't be that hard to understand.

 

[Lee Stockwell]

Brian is suggesting a pseudobusiness on the side? Can I give you the IRS phone number so you can get the particulars correct?

 

[FB7777]

X 2

 

[rhino1]

Brian...suggesting something shady...I'm shocked!