Can I pay myself wages if I am self employed?

This is a common question.  You are self-employed or owner of a business.  You do not want to deal with paying quarterly tax estimates to the IRS.  There are many companies offering payroll services.  The payroll company can manage all your payroll needs for you.  If you pay yourself sufficient wages, you will get a refund at the year. Seems easy.  Well it is.  But are you are unsure if you can put yourself on payroll.

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Independent Contractor Trap

In our previous article, we reviewed the advantages and disadvantages of hiring independent contractors compared to employees.  Small business will want to treat all workers as independent contractors. It is less expensive and less work.  Conversely, workers prefer to be treated as employees.  The worker will pay less tax and it is less hassle.  The small business and the workers have conflicting interest.

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Independent Contractor or Employee Decision

Small businesses decide how to treat workers, employees or independent contractors. This decision has major impacts to both the small business and the worker.  For the business, it is less work and less expensive to hire an independent contractor.  For the worker, it is less work and less expensive to be treated as an employee.

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Lansing Front Page December 29, 2013

ALG Tax Solutions President, A.J. Gross, on the front page of a local Lansing newspaper, The New Citizens Press.

Lansing Newspaper Photo December 29, 2013

A.J. Gross, C.P.A., E.A., writes tax articles for The New Citizens Press.  This is the second time in a row.  Hopefully, this will continue.  The article can be read here.


Track IRS Business Miles

We run across a lot of clients that do not keep track of their IRS business miles.  It can be a pain to record your IRS business miles.  However, not having sufficient records for your IRS business miles will cause more headaches down the road if you are audited by the IRS.  Use one of the following 4 methods to satisfy the IRS record keeping requirements for IRS business miles.
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