Use savings to pay for taxes, checking for outgoing expenses. To help keep track of expenses a business Credit Card can be handyKeep receipts, useful to scan and store the documents in a specific tax year folder for the businessCurrent mileage rates:51 cents per mile for business miles driven19 cents per mile driven for medical or moving purposes14 cents per mile driven in service of charitable organizations
Set the money aside to make sure you can pay your taxes, nothing worse then not having the money in April when it is due. Put the taxes in a savings acct and earn interest on it. If you have extra after paying taxes, you can save the money for next years taxes or use it.If your office is 8% of your house, you can write off that same percentage of costs related to running your business.Estimated Taxes can be helpful for simplifying your payments; are required after a certain amount of income is earnedUse a tax professional they can help you make sure you get the most out of your business income, while still staying with in the law (also tax deductible on the next years taxes)If you question if it’s legit, it probably isn’t worth getting in trouble and paying more money and time in the long run
Beyond Full Time Employment
BEYONDFULL TIMEEMPLOYMENTPART TIME, CONTRACT & FREELANCE WORKAS ALTERNATIVES TO FULL TIMEEMPLOYMENT Messiah UMC Jobs Ministry
AGENDA• Part Time Work (Gwen)• Contracting/Freelancing (Will)• Self Employed Taxes (Ben)• Questions
BRIDGING THE GAP:PT & TEMP JOBSWhy Consider PT or Temp Work?• Source of Income (maybe benefits)• Keep Skills Fresh or Learn New Skills• Opens Doors – Contacts & Employers• Allows Time to Search for Permanent Job
PART TIME JOBSShorter Work Week (Under 30-35 hrs)• SeasonalTax Season, Summer, Holiday, etc.• Shorter Week & Shift Work Helps with childcare issues Time available 9-5 for FT interviews• Work from Home? Caution re:$$ outlay and legitimacy
TEMPORARY JOBS• Short-Term Commitment: FT or PT• Try out new companies, jobs, skills• Gain experience• Flexibility: duties, time committed• Potential for Permanent Hire ********************************AGENCIES: TEMP vs TEMP- TO-PERM
WEB RESOURCESwww.snagajob.com: part-time jobswww.americanstaffing.net: agencieswww.net-temps.com : temp listingswww.quintcareers.com Search: Temp Jobs & MatureWorkerswww.aarp.org/work/www.jobsearch.about.comSocial Media Sources!
CONTRACTING AS ALONG TERMEMPLOYMENT SOLUTION• Many definitions of a contractor• Individual as a W2 contractor• Individual as a 1099 contractor
WORKING THROUGHCONTRACT AGENCIES PLUSES MINUSES • Back office • Crowded market support/collections • Rates are being • Regular paycheck choked • Some access to • In Business to place bodies group benefits • Salary + Overhead • Access to clients & can price you out of BD deals • Work on a contract • Work on a contract term term
MANAGE RECRUITER &AGENCY RELATIONSHIPS• Beware of dual resume submissions.• Remember agency recruiters aren’t HR Pros.• Get job description/requirements in writing.• Find a good recruiter, connect with them through LinkedIn and stay in touch.• Cut bad recruiters loose.
WORKING AS AFREELANCER• Must meet independent contractor guidelines. • IRS Site• Must like working without a “net” – you’ll be wearing a lot of hats.• Every day is a passive (and often times) proactive job hunt.• Treat it like a business
CALCULATING YOURHOURLY RATE• 1099 vs. W2• Being competitive while not pricing yourself out of contracts• Know your expenses every month • Rent/Mortgage • Utilities • Car payment• More firms trying to place contractors push down hourly rates• Companies hiring contractors are pushing back on rates as well
GETTING HEALTHINSURANCEAssociations Alumni Groups Cobra Contract Agency/Employment Firm Can you get coverage? Can you afford the premiums? Does it cover what you need covered?
IRS WEBSITE – VERY HELPFUL http://www.irs.gov/businesses/small/index.html
SELF EMPLOYED –ACCOUNTING•Separate savings/checking account•Keep track of all business related expenses – Paper, Computers, Printers / Ink – Travel to business related meetings or purchases – Health Insurance•You can write off home office – Heating, Electric, Water, etc. A portion can be written off, keep track of them as they happen•Set up simple spreadsheet using MS Excel or Google Docs – Thoughts: Tab for Income, Tab for Expenses, Tab Mileage, Tab for Home Office Utility details. – Keep track of date of transaction, amount, and descriptionKeeping organized now =easier tax and business preparation later!
SELF EMPLOYED – TAXES• Set aside at least 30% of paychecks for tax purposes• Recommend SEP-IRA (up to 20% of earnings)• To make estimated tax payments visit: Electronic Federal Tax Payment System (EFTPS) website• Visit IRS Website for more details on taxes: http://www.irs.gov/businesses/small/index.html (Bing or Google self-employment taxes)• Recommend using a tax professional• Read the rules before taking a deduction! Don’t do something you may regret and pay for later.