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Text 14805, 97 rader
Skriven 2005-08-28 20:03:00 av Jeff Binkley (1:226/600)
     Kommentar till en text av Bob Sakowski
Ärende: More bad news for democra
=================================
BS>-> Because I am nearing retirement.  Why would I give up 
BS>-> potential  retirement benefits with just a few years to go ?  
BS>-> If they eliminate my job I'll get retirement benefits and 
BS>-> may even just live off of my investments.  It's just a 
BS>-> matter of timing.

BS>I understand, it would be silly to quit under those circumstances but
BS>I was considering the option you mentioned say 10 years ago.

I did consider it.  I decided to leave the option open but see how 
things panned out at my current employer.  Many of my peers did go out 
on their own in the 1997-1998 timeframe.  IT shops couldn't hire enough 
contractors for Y2K. I started a small business on the side.  I decided 
to shut it down when it became too capital intensive.      


BS>-> See above.  I know many consultants.  I have close to 20 of 
BS>-> them working for me and I've ended up hiring another 15, 
BS>-> who wanted full time jobs and it was cheaper for our company 
BS>-> to hire them. 

BS>Of course it is because you aren't required to give independent
BS>contractors, consultants if you will, any benifits.  Oil companies,
BS>cable companies, etc. have been doing that for much longer than
BS>financial institutions, Jeff.

We pay them more than full time employees and they fund their own 
healthcare.  Right now we hire them for temporary assignments like 3-9 
months.  


BS>-> I had a number who haven't wanted to be hired because 
BS>-> they make more as consultants and they get paid overtime. 

BS>We did not pay our contractors OT.  If they thought they needed more
BS>compensation for the work they performed, they were welcome to
BS>negotiate.

Depends upon whether they are time and materials vs. fixed bid.  


BS>-> Whereas a salaried employee, they don't.  It would appear I know 
BS>-> a tad bit more about consulting than you do.  

BS>Perhaps, but you haven't demonstrated that yet.

You did for me.


BS>-> Consultants also must pay 15.3% of their first $90,000k of 
BS>-> income to the government for Social Security and Medicare taxes.  

BS>Is this supposed to be a scoop Jeff?

No, a fact.  Contractors are subject to nearly 50% taxation right off 
the top.  27% for federal income taxes, 15.3% for social security and 
then 5-8% for state and local taxes.  


BS>-> Of course there are other ways around this like limited 
BS>-> partnerships, 

BS>I would doubt if your average contractor is structured as an LLC
BS>Jeff.

You'd be surprised.  Many are.  Taxes are less.


BS>-> investment income route as my first alternative. 

BS>I Understand for I take advantage of the depletion allowance on my
BS>oil income.  Of course I do have to pay Severence Taxes and
BS>Conservation Taxes but that is deducted at the wellhead.  I also must
BS>pay Ad Valorem Tax to the county in which the leases are located. If
BS>the operator has his stuff together when he completes and sends out
BS>renditions in the Spring, the Ad Valorem Tax bite can be kept to a
BS>minimum.  The Ad Valorum Tax is similar to a property tax but is
BS>based on the estimated value of the oil still in the ground.  It is
BS>just another way for the counties to get money out of oil.  BTW, this
BS>is in Kansas, as far as I know in most other states, the county
BS>taxes the oil at the wellhead just as the state does.

BS>I don't mind paying taxes for civic improvements that I will use but
BS>I cannot imagine my ever going back to west central Kansas ever
BS>again.

BS>Such is life but as I said, it really is all good.

At least you have a source of retirement income from an investment.  
There is nothing wrong with this.  I wish more people did.


Jeff


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