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How do you pay yourself.

Discussion in 'Ask An Owner Operator' started by Highwolf89, Mar 13, 2016.

Page 1 of 6
  1. Mar 13, 2016 #1
    Highwolf89

    Highwolf89 Light Load Member

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    FOr awhile i was paying myself through ADP also tried paychex... did that for a little bit but found out keeping up with the financial part it got hard because you had to pay the government a certain amount of your income tax on the business side. So to bring home 800 net it was costing me around 1400 that was business tax and person income tax side. I have friends who file their taxes different and base it off a business profit but the reason it works for him is because his wife pays alot in taxes so he walks away clean... I like the adp way cause i know it is legit and i get a W2 at the end of the year but its hard sometimes to pay that extra amount to the governement on the income tax side... I have no problem paying income tax personally but when the business has to match a percentage and my business doesnt make much its where i have the problem... Any advise or how you guys do it will be great.. Thanks
     
    Highwolf89, Mar 13, 2016
    Highwolf89, Mar 13, 2016
    #1
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  3. Mar 13, 2016 #2
    Hurst

    Hurst Registered Member

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    I'm still 1099 Sole Proprietor. Even though I keep money separated for different things. Its ALL my money and I spend it as I want/need.

    I've been pretty lucky when itemizing, aside from my quarterly deductions, I have not had to pay any taxes owed or income tax in over 3 yrs now.

    Hurst
     
    Hurst, Mar 13, 2016
    Hurst, Mar 13, 2016
    #2
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  4. Mar 13, 2016 #3
    Accidental Trucker

    Accidental Trucker Road Train Member

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    There's no way around paying taxes throughout the year. If you pay yourself through draws or 1099, you still have to make quarterly estimated payments.

    As a side note, if everyone in this country had to write that tax check every time they got paid, there would be riots.....
     
    Accidental Trucker, Mar 13, 2016
    Accidental Trucker, Mar 13, 2016
    #3
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  5. Mar 13, 2016 #4
    Scooter Jones

    Scooter Jones Road Train Member

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    I set up an LLC and file as an S Corp. I am an employee of the S Corp. I use Qbooks and had my accountant set up recurring payroll on a month to month basis, an equal salaried amount every month including per diem. I keep close track of my per diem and make sure I adjust it up or down throughout the calendar year accordingly.

    Qbooks automatically creates a payroll liabilities report for the feds & state as a payable due. I pay them as I go. Pretty simple really.
     
    Scooter Jones, Mar 13, 2016
    Scooter Jones, Mar 13, 2016
    #4
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  7. Mar 13, 2016 #5
    Straight Stacks

    Straight Stacks Paper Cha$er

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    I do the same as Scooter, minus Qbooks. My accountant handles that.
     
    Straight Stacks, Mar 13, 2016
    Straight Stacks, Mar 13, 2016
    #5
  8. Mar 13, 2016 #6
    Scooter Jones

    Scooter Jones Road Train Member

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    Yeah, I try and do as much as I can accounting wise. Those accountants are like lawyers when it comes to racking up the pay meter ;-)
     
    Scooter Jones, Mar 13, 2016
    Scooter Jones, Mar 13, 2016
    #6
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  9. Mar 13, 2016 #7
    Cat sdp

    Cat sdp . .

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    With the way things are now I don't get paid anything ....
     
    Cat sdp, Mar 13, 2016
    Cat sdp, Mar 13, 2016
    #7
    TGUNKEL Thanks this.
  10. Mar 13, 2016 #8
    Roadawg

    Roadawg Light Load Member

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    C-Corp paid as a W2 employee through a payroll company.
     
    Roadawg, Mar 13, 2016
    Roadawg, Mar 13, 2016
    #8
  11. Mar 13, 2016 #10
    Highwolf89

    Highwolf89 Light Load Member

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    when i was paying myself through adp i was paying myself a check and paying income tax and the business was held accountable for a % of that income tax that was matched to medicare and stuff I dont mind paying the income tax but that extra % sucks on the companies part... I love having everything seperate... Scooter would love for you to go more into detail.. if you could about how much you pay yourself and how much goes out to tax liable... cause i know i was paying myself 800 net weekly with income tax filing one it was around 1180 but sense the company had to match the medicare and stuff it turned into 1420 or something like that... so that extra 300 dollars was killing me a week...
     
    Highwolf89, Mar 13, 2016
    Highwolf89, Mar 13, 2016
    #10
  12. Mar 13, 2016 #10
    Highwolf89

    Highwolf89 Light Load Member

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    Jul 30, 2013
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    I have a C corp to roadawg i was using a payroll company
     
    Highwolf89, Mar 13, 2016
    Highwolf89, Mar 13, 2016
    #10
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