Employment Taxes – What Are They?Written by Richard A. Chapo
If you have employees, you are responsible for paying a variety of taxes at federal, state, and local levels. You must also withhold certain taxes from paychecks of your employees. So, what are employment taxes?
Employment taxes include following.
1. Federal income tax withholding
2. Social Security and Medicare taxes
3. Federal unemployment tax (FUTA).
Federal Income Taxes/Social Security and Medicare Taxes
You generally must withhold federal income tax from wages paid to an employee. Form W-4 is used to determine specific amount, although most payroll services or your accountant will do this for you.
Social security and Medicare taxes pay for benefits that workers and families receive under Federal Insurance Contributions Act (FICA). Social security tax pays for benefits for retired, survivors, and disability insurance distribution provisions of FICA. Medicare tax pays for benefits under medical care provisions of FICA. As an employer, you must withhold a percentage of these taxes from employee and match withholding amount.
Ten Tips for Choosing the Right Direct Sales CompanyWritten by Susie Cortright
Direct sales can be your ticket to a profitable home-based business. There's low risk and low overhead - and you'll find lots of conversation, creativity, and cooperation among company's representatives. But how do you know which company is right for you? Here are ten things to look for as you research your options.
1. Products. Successful direct sales consultants exude a genuine enthusiasm for their products. Before joining a company, you'll need to have inner conviction that your company brings products and an opportunity that no other company can. It's important for you to get your hands on products before you sign. Place an order or, at very least, request a catalog and product samples before joining.
2. Passion. Does this company involve a business you are truly passionate about? One of nice things about a direct sales business is that you can often find one that suits your personal passion...whether it's cooking, home décor, beauty, or scrapbooking & cardmaking. And when you're genuinely enthusiastic about industry and product, you'll feel as though you are sharing, teaching, and helping - not selling.
3. Initial investment. What kind of cash outlay will your start-up require? Look closely at company's joining fee and/or cost of your business starter kit, but also think realistically about how much inventory you'll need to have on hand and what kinds of business supplies or products you'll need to get your business started.
4. Monthly minimums. What kind of personal sales volume is required? Are you ready to invest time and energy that this level of business building requires?