Self employed or an employee

[Amw2014]

Hey.

Dh has 2 job opportunities. Both offer the same pay rate. Would it be better for us financially for him to be an employee or self employed? If he's self employed he would have some tax right offs such as mileage. Any advice or know of any online calculators to help us see the difference?

Thanks!

[doingitallwrong]

What other benefits come with the employee job? Health insurance, 401(k) match, paid vacation days, etc.? The pay rates may be the same but the benefits package can increase the overall compensation.

[Amw2014]

It's a pt job -3 days a week. No additional benefits pto etc.

[disneysteve]

I'm not a accountant so don't quote me on this but I believe when you are self-employed, you pay more in taxes because employers pay part of your Social Security tax but when you're self-employed, you pay all of it.

[doingitallwrong]

If you're self-employed you have to pay both the employer and employee portions of SS/Medicare tax, but you get to deduct the employer half from your adjusted gross income. You can usually subtract more expenses as a contractor than as an employee, but you'll also need to make estimated tax payments. This article covers some of the basic considerations:

http://www.bankrate.com/finance/taxes/employee-vs-contractor.aspx

[edg126]

I was self employed for 3 months. It's not difficult to do the year end taxes but it's a hassle. I'd need to be paid significantly more to do it again.

[GeorgetteSpurling]

Self employed peoples had to pay more than employee, and various risks are also there.

[Amw2014]

One more question, if he is self-employed, can we write off our health insurance premiums?

[disneysteve]

One more question, if he is self-employed, can we write off our health insurance premiums?

Anyone can write off their health insurance premiums and other medical expenses but only if they exceed a certain percentage of your income. I'm not sure what the number is but I know we never hit it so we don't get to take the deduction.

[scfr]

One more question, if he is self-employed, can we write off our health insurance premiums?

It depends. If you are a USA resident, I suggest you go to the IRS web site (www.irs.gov) and search for the information you need. There are different rules for the self-employed and employees.

[doingitallwrong]

As a self-employed person, you can deduct health insurance premiums for yourself, your spouse, and your dependents (or children under 27) *if* you have a net profit on your Schedule C, and only up to the net profit amount. (There's a worksheet to help you figure out how much is deductible.)

If you take the SE premium deduction, you must subtract that amount from your medical expenses if you itemize deductions. (The itemized deduction is anything over 10% of your AGI.)

[JohnM.Hendricks]

Being Self-Employed is good. There are some reasons Why You’re Better off Being Self-Employed.
1. You’re your own boss.
2. You earn more money.
3. You spend less.
4. You enjoy variety.
5. No co-worker drama.
6. Sick Day? A-OK!
7. Your work area is truly yours.
8. New equipment when you need it.
9. No uniforms.
10. You set your own schedule.
11. You’re more valued.
12. You choose your own customers.

[RudolfLesko]

I will be on a Faver of being self employed, some reasons are:
You can earn more money,
You will spend less,
You may enjoy verity,
There will be no co-worker drama,
Your work area will be truly yours.

[WillieGearhart]

Self employee has to pay various taxes also, no doubt your income will be increased many times you got while employed any where else, but you also have more risks even. I think you should consult with a financial service to get a proper solution.