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Discussion Starter · #1 ·
I have noticed on this site and other sites I frequent that every employer has serious concerns about this upcoming year and how to handle the medical insurance issue.
This may help, it has helped us....A LOT
We use a company called Tri-Odyssey PEO for our payroll needs. Costs us 23.34%...pay an employee $100.00 send them $123.34. This covers all our payroll liabilities and their fees.
They do all the drug testing workmans comp and everything to do with employees. They actually saved us a lot of revenue on WC insurance.
That said, what we have done to prepare for this upcomming year is place ALL employees, myself included on an "on-call" status.
an on-call employee is not considered "full-time"...you would not have to cut your good employees hours this way.
In addition our PEO is able to provide benifits that we could never...
They are nationwide so if anyone would like their information PM me and I'll get it to you...It's worth a looksee
Hope this helps...
 
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I have noticed on this site and other sites I frequent that every employer has serious concerns about this upcoming year and how to handle the medical insurance issue.
This may help, it has helped us....A LOT
We use a company called Tri-Odyssey PEO for our payroll needs. Costs us 23.34%...pay an employee $100.00 send them $123.34. This covers all our payroll liabilities and their fees.
They do all the drug testing workmans comp and everything to do with employees. They actually saved us a lot of revenue on WC insurance.
That said, what we have done to prepare for this upcomming year is place ALL employees, myself included on an "on-call" status.
an on-call employee is not considered "full-time"...you would not have to cut your good employees hours this way.
In addition our PEO is able to provide benifits that we could never...
They are nationwide so if anyone would like their information PM me and I'll get it to you...It's worth a looksee
Hope this helps...

I use a payroll that does the same I love it!
 

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How many employees do you have?

The law only requires you to pay insurance when you have over 50 full time employees.

You better check with a lawyer because my accoutant told me anybody that works 30 hrs or more a week is a full time employee
 

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Discussion Starter · #4 ·
When you use a PEO you are providing work for their employees...
In theory you are leasing their employees...
 

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Discussion Starter · #6 ·
Sounds like insurance fraud to me. Watch out.
We have been using them for three years now.
if you have employees it is worth a look to see if they can save you some bucks...
www.odysseynv.com

that is the office we deal with. they are nation wide. But they deal with the w-2's workmans comp...this was how we dealt with WC issues we were having.they deal with the UEID, drug testing etc...
Anything that has to do with ab employee except hiring...that is your call.
Plus the have a labor pool should I get stuck on something and need a body NOW...inaddition there are about 50k employees inthere data base and they can offer insurance at decent rates..
Not sure how that will play out yet...time will tell
 

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My wc for handy man work is 9.53 per 100 add about 3 for employer tax and 1 for accounting you are paying almost 10 dollar per 100 for the payroll service. You can get quickbooks payroll advanced and it does all that for about half the price of your current service. Look at paychek I think they charge less than what you currently pay.

Payroll is not hard to do, its 3 forms every quarter 1 form every month, 2 forms at year end. Quickbooks does all the work you just hit a button. I have a digital time clock so with that you don't even have to input any data just hit a button that's says submit time sheets

Looking at the website they are a temp\hiring service I used express in the past and every guy I got had issues. Lots of drama queens and guys that worked in factories. Most factory workers I have used are lazy and can only focus on 1 tasks at a time. in our business you have to see behind the trash and find damages
 

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Here's another thing to consider. Once the 1st of the year hits and the tax cuts expire, if your adjusted gross is over $59,000 you will be paying another 13% in federal tax. (15% to 28%) If your running a 25% margin on average it just went to a 12% margin. I for one will not work for a 12% margin. 10% profit and 10% overhead is my minimum. To many variables that could eat up that 12% VERY quickly.............
 

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mtmtnman:
Unless I'm missing something(which i could be), an increase of 13% in taxes, would not mean your margin would be cut in half. Your taxable would be based on your net, not your gross.

Example with 25% gross margin
Before: $100 gross, $25 net - 15% taxes = $21.25
After: $100 gross, $25 net - 28% taxes = $18.25

Therefore an increase of taxes by 13% would equal about a 15% reduction in take home, not a reduction of more than half.

While it sucks either way, it probably wouldn't be business ending.

whlmc:
I don't believe you are including enough employer side taxes in your example. I don't have my rate off hand but seem to be paying a lot more than 3% in employer side "extra taxes" such as social security, medicare, unemployment, etc.
 

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I just looked it up I pay $3.75 per 100 in payroll that includes the employers share of the taxes,and unemployment insurance. My rate is low 1.3% because my guys have never gone on unemployment, I known some guys pay close to 11.58% because they use unemployment all the time.
 

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who gave you that number 13% increase in tax next year? I just went over this with my accountant on wednesday and he said its only a 4.56% on adjusted gross. The social security rate went up less than 1% 2 weeks ago.

If you own a commercial property the new tax code is really in your favor. The new code lets you depreciate separate parts of your building. Example you can depreciate the roof over 5 years vs the usually 39 year, finish materials over 7 years vs the normal 39 and HVAC systems over 5 years vs normal 39 year. Then when you replace them you can start the depreciation all over again.

So if you have the cash, go buy a building because speeding up the depreciate over 5 years is going to save you a ton in taxes.

Here's another thing to consider. Once the 1st of the year hits and the tax cuts expire, if your adjusted gross is over $59,000 you will be paying another 13% in federal tax. (15% to 28%) If your running a 25% margin on average it just went to a 12% margin. I for one will not work for a 12% margin. 10% profit and 10% overhead is my minimum. To many variables that could eat up that 12% VERY quickly.............
 

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mtmtnman:
Unless I'm missing something(which i could be), an increase of 13% in taxes, would not mean your margin would be cut in half. Your taxable would be based on your net, not your gross.

Example with 25% gross margin
Before: $100 gross, $25 net - 15% taxes = $21.25
After: $100 gross, $25 net - 28% taxes = $18.25

Therefore an increase of taxes by 13% would equal about a 15% reduction in take home, not a reduction of more than half.

While it sucks either way, it probably wouldn't be business ending.

whlmc:
I don't believe you are including enough employer side taxes in your example. I don't have my rate off hand but seem to be paying a lot more than 3% in employer side "extra taxes" such as social security, medicare, unemployment, etc.

Anything over 59K will be taxed at 28% in 2013. Now it's 15%, So your 1st 59K will be at 15% and anything above will be at 28% So if your running a 25% margin in 2012, you'll be running a 25% margin up to 59K and a 12% margin on any earnings over that in 2013. Comprende??
 

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who gave you that number 13% increase in tax next year? I just went over this with my accountant on wednesday and he said its only a 4.56% on adjusted gross. The social security rate went up less than 1% 2 weeks ago.

If you own a commercial property the new tax code is really in your favor. The new code lets you depreciate separate parts of your building. Example you can depreciate the roof over 5 years vs the usually 39 year, finish materials over 7 years vs the normal 39 and HVAC systems over 5 years vs normal 39 year. Then when you replace them you can start the depreciation all over again.

So if you have the cash, go buy a building because speeding up the depreciate over 5 years is going to save you a ton in taxes.
Here is what my accountant sent me. This is IF the bush tax cuts expire which i find VERY likely. Your accountant must be much more optimistic.
 

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And as far as commercial property here?? No way a working man can afford that. A dump of a commercial building here will run you a quarter mil. I'll stay out on my acerage in the country with no zoning thank you very much.......
 

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And as far as commercial property here?? No way a working man can afford that. A dump of a commercial building here will run you a quarter mil. I'll stay out on my acerage in the country with no zoning thank you very much.......

Same here!
 

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That tax table just goes to show that the hnic is and was a lying sack of stuff.
Taxes aint going up on the middle class??????????????? looks like a big fat
lie and all the suckers took a big huge bite of it.
 

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Anything over 59K will be taxed at 28% in 2013. Now it's 15%, So your 1st 59K will be at 15% and anything above will be at 28% So if your running a 25% margin in 2012, you'll be running a 25% margin up to 59K and a 12% margin on any earnings over that in 2013. Comprende??

But the adjusted gross would be your margin.

Example 1(now): $400k gross, 25 % margin = $100k adjusted - 15% tax= $85k after tax(21.25% after tax margin)

Example 2(future): $400k gross, 25% margin = $59k - 15% and $41k - 28% = $79,670 after tax(19.91% after tax margin)

Net change = 1.3% reduction in after tax margin


Now this is assuming you are passing all income along to yourself. I very well could be wrong, feel free to correct.
 

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But the adjusted gross would be your margin.

Example 1(now): $400k gross, 25 % margin = $100k adjusted - 15% tax= $85k after tax(21.25% after tax margin)

Example 2(future): $400k gross, 25% margin = $59k - 15% and $41k - 28% = $79,670 after tax(19.91% after tax margin)

Net change = 1.3% reduction in after tax margin


Now this is assuming you are passing all income along to yourself. I very well could be wrong, feel free to correct.


I figure what i pay taxes on by my adjusted gross after i deduct everything i can. Say my adjusted gross is 70K in 2013. I will pay 15% on 59K or $8,850 and i will pay 28% on the balance to 70K which is $11,000 or $3,080 in tax. Anyway you look at it your paying 28% on whats left instead of 15%..................
 

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Anything over 59K will be taxed at 28% in 2013. Now it's 15%, So your 1st 59K will be at 15% and anything above will be at 28% So if your running a 25% margin in 2012, you'll be running a 25% margin up to 59K and a 12% margin on any earnings over that in 2013. Comprende??
MTMTNMAN, I get where you're coming from but I'm with Swift on this one. I think the term margin is being used incorrectly here. Your margin isn't changing. Your Net is changing on anything over $59K.

In a previous post, you mentioned 10% Overhead and 10% profit. If that is indeed the case, your overhead (10%) will be taken off of your gross before the taxes are calculated.

So as I understand it, as long as the labor you pay yourself and the company profit stay at or under 59k, nothing changes. I am making an assumption that you operate as an LLC or sole proprietor that comes through on a schedule C to your personal taxes. If you are running the business as a C or S corp, you maybe correct.

This is why end of the year tax planning is so important for any business and will become increasing more important if that idiot in the white house screws the middle class. I agree with BPWY on this one, the middle class will take it in the shorts!:icon_rolleyes:. I'm spending money right now that I planned on spending next year anyway (my kid is going to college next fall and the business must loose money for the FAFSA form I gotta fill out). New work shirts, website development, continuing education, possibly a skidsteer, etc. Next year will most likely be even worse for all of us. You might even need to buy a new work truck instead of driving around 15 year old ones.:clap:
 

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I figure what i pay taxes on by my adjusted gross after i deduct everything i can. Say my adjusted gross is 70K in 2013. I will pay 15% on 59K or $8,850 and i will pay 28% on the balance to 70K which is $11,000 or $3,080 in tax. Anyway you look at it your paying 28% on whats left instead of 15%..................

Yep no matter how you look at it, it sucks. And I need to do much better tax planning as well. It helps that my wife earns W-2 income, and her withholdings help to offset my income some.

And I'm still dealing with a tax audit issues from a couple of years ago. I am trying to get an audit re-opened. I had to mail in a letter to reopen it. I send the letter in the first week of January. They have sent me THREE letters saying they are behind in processing paperwork and it'll be another couple of months. It would take someone no more than five minutes of reviewing my case to know it needs reopened. Meanwhile I'm forced into making monthly payments on a tax debt that I shouldn't have, otherwise they will send collections after me. They have also held a five figure tax refund from another year when my wife and I had a lot of W-2 income.
 
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