Gasoline prices..............
 

"Dan" wrote in message
...
Animal05 wrote:

Dan wrote:

Short Wave Sportfishing wrote:

On Fri, 12 Jan 2007 03:51:25 GMT, "Mike" wrote:


Funny how big business works. In my small business, I'm the LAST one
to get paid.




I've been working with a guy I've known for years - he started up a
mechanical engineering/machine shop that does custom fittings and
highly specialized machined parts for all kinds of industries. He has
some metallurgical expertise that's hard to find and some machinists
who are absolute geniuses with a CNC machine.

He pays himself $1 more than the highest paid employee he has.



The problem is that he is the business owner. I could pay myself $8.00
and hour but, at the end of the year, my personal income tax bill would
be well over $100K if I took my profit as retained earnings. He's
probably an S-corp, too so if he's profitable, the money has to go
somewhere.


There is a simple reason for this.

Wages are subject to FICA taxes up to around 95k a year, and there is no
limit to the Medicare Tax.

By taking a reasonable wage, and then taking the rest of business profits
as dividends, you legally avoid paying the addiontal taxes.



True, but then I would have to live on under $95K throughout the year and
take he rest as income in a lump sum.

--
Posted via a free Usenet account from http://www.teranews.com


quarterly dividends.

Gasoline prices..............
 

"-rick-" wrote in message
. ..
Animal05 wrote:

$1.88 this morning :-)

$2.899 this morning. (blue state)

$2.59 at Safeway - $0,06 for club card holders. Dublin, CA yesterday.

Gasoline prices..............
 

Dan wrote:

Animal05 wrote:

Dan wrote:

Short Wave Sportfishing wrote:

On Fri, 12 Jan 2007 03:51:25 GMT, "Mike" wrote:


Funny how big business works. In my small business, I'm the LAST
one to get paid.





I've been working with a guy I've known for years - he started up a
mechanical engineering/machine shop that does custom fittings and
highly specialized machined parts for all kinds of industries. He has
some metallurgical expertise that's hard to find and some machinists
who are absolute geniuses with a CNC machine.

He pays himself $1 more than the highest paid employee he has.




The problem is that he is the business owner. I could pay myself
$8.00 and hour but, at the end of the year, my personal income tax
bill would be well over $100K if I took my profit as retained
earnings. He's probably an S-corp, too so if he's profitable, the
money has to go somewhere.


There is a simple reason for this.

Wages are subject to FICA taxes up to around 95k a year, and there is
no limit to the Medicare Tax.

By taking a reasonable wage, and then taking the rest of business
profits as dividends, you legally avoid paying the addiontal taxes.



True, but then I would have to live on under $95K throughout the year
and take he rest as income in a lump sum.


There are other ways..................

Gasoline prices..............
 

Harry Krause wrote:
On 1/14/2007 1:56 PM, wrote:
On 13 Jan 2007 17:26:30 -0800, "Tim" wrote:

Could do like the religious snake oil salesman, "reverend Ike" did back
in the late 70's.

he had a $30,000 a year salary and an unlimited expense acct.



That is the trick with owning a business. You always drive a company
vehicle, with a company gas card. You have a lot of business meals and
business trips. At a certain point you don't need much salary to live
fairly well.


Yep. Welfare for the wealthy.

If all you want to do a punch a clock 9-5 M-F then all you should expect
is a paycheck.

Gasoline prices..............
 

"Bert Robbins" wrote in message
. ..
Harry Krause wrote:
On 1/14/2007 1:56 PM, wrote:
On 13 Jan 2007 17:26:30 -0800, "Tim" wrote:

Could do like the religious snake oil salesman, "reverend Ike" did back
in the late 70's.

he had a $30,000 a year salary and an unlimited expense acct.



That is the trick with owning a business. You always drive a company
vehicle, with a company gas card. You have a lot of business meals and
business trips. At a certain point you don't need much salary to live
fairly well.


Yep. Welfare for the wealthy.

If all you want to do a punch a clock 9-5 M-F then all you should expect
is a paycheck.

If only it were that simple.
Anyone in the civil service can tell you that cutback after cutback has left
most departments streatched to the limit with more & more demands being
placed on the '9-5 worker'.
At least that's the way it has evolved up here since the 80s.

Gasoline prices..............
 

"Don White" wrote in message
...

"Bert Robbins" wrote in message
. ..
Harry Krause wrote:
On 1/14/2007 1:56 PM, wrote:
On 13 Jan 2007 17:26:30 -0800, "Tim" wrote:

Could do like the religious snake oil salesman, "reverend Ike" did
back
in the late 70's.

he had a $30,000 a year salary and an unlimited expense acct.



That is the trick with owning a business. You always drive a company
vehicle, with a company gas card. You have a lot of business meals and
business trips. At a certain point you don't need much salary to live
fairly well.


Yep. Welfare for the wealthy.

If all you want to do a punch a clock 9-5 M-F then all you should expect
is a paycheck.

If only it were that simple.
Anyone in the civil service can tell you that cutback after cutback has
left most departments streatched to the limit with more & more demands
being placed on the '9-5 worker'.
At least that's the way it has evolved up here since the 80s.


So those civil servants are finally doing some work and earning their
paycheck?

Gasoline prices..............
 

Don White wrote:
"Bert Robbins" wrote in message
. ..
Harry Krause wrote:
On 1/14/2007 1:56 PM, wrote:
On 13 Jan 2007 17:26:30 -0800, "Tim" wrote:

Could do like the religious snake oil salesman, "reverend Ike" did back
in the late 70's.

he had a $30,000 a year salary and an unlimited expense acct.


That is the trick with owning a business. You always drive a company
vehicle, with a company gas card. You have a lot of business meals and
business trips. At a certain point you don't need much salary to live
fairly well.

Yep. Welfare for the wealthy.
If all you want to do a punch a clock 9-5 M-F then all you should expect
is a paycheck.

If only it were that simple.
Anyone in the civil service can tell you that cutback after cutback has left
most departments streatched to the limit with more & more demands being
placed on the '9-5 worker'.
At least that's the way it has evolved up here since the 80s.

It is that simple.

If you don't like what your employer pays your or demands of you then
you can quit and go work somewhere else or start your own business. If
you are not willing to change your situation then all you are doing is
punching a clock 9-5 M-F and you get what you get not what you want.

Gasoline prices..............
 

Bert Robbins wrote:

Don White wrote:

"Bert Robbins" wrote in message
. ..

Harry Krause wrote:

On 1/14/2007 1:56 PM, wrote:

On 13 Jan 2007 17:26:30 -0800, "Tim" wrote:

Could do like the religious snake oil salesman, "reverend Ike" did
back
in the late 70's.

he had a $30,000 a year salary and an unlimited expense acct.


That is the trick with owning a business. You always drive a company
vehicle, with a company gas card. You have a lot of business meals and
business trips. At a certain point you don't need much salary to live
fairly well.


Yep. Welfare for the wealthy.

If all you want to do a punch a clock 9-5 M-F then all you should
expect is a paycheck.


If only it were that simple.
Anyone in the civil service can tell you that cutback after cutback
has left most departments streatched to the limit with more & more
demands being placed on the '9-5 worker'.
At least that's the way it has evolved up here since the 80s.


It is that simple.

If you don't like what your employer pays your or demands of you then
you can quit and go work somewhere else or start your own business. If
you are not willing to change your situation then all you are doing is
punching a clock 9-5 M-F and you get what you get not what you want.



You are asking a socialist to understand personal responsibility????

Gasoline prices..............
 

"JimH" wrote in message
...

"Don White" wrote in message
...

"Bert Robbins" wrote in message
. ..
Harry Krause wrote:
On 1/14/2007 1:56 PM, wrote:
On 13 Jan 2007 17:26:30 -0800, "Tim" wrote:

Could do like the religious snake oil salesman, "reverend Ike" did
back
in the late 70's.

he had a $30,000 a year salary and an unlimited expense acct.



That is the trick with owning a business. You always drive a company
vehicle, with a company gas card. You have a lot of business meals and
business trips. At a certain point you don't need much salary to live
fairly well.


Yep. Welfare for the wealthy.

If all you want to do a punch a clock 9-5 M-F then all you should expect
is a paycheck.

If only it were that simple.
Anyone in the civil service can tell you that cutback after cutback has
left most departments streatched to the limit with more & more demands
being placed on the '9-5 worker'.
At least that's the way it has evolved up here since the 80s.


So those civil servants are finally doing some work and earning their
paycheck?

They sure do up here. (at least the vast majority do)

Gasoline prices..............
 

"Bert Robbins" wrote in message
...
snip..
If you are not willing to change your situation then all you are doing is
punching a clock 9-5 M-F *and you get what you get* not what you want.



That's quite profound Bert. Don't suppose there are any other variables
that could be at play ?