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-   -   Am I losing money that should be in my pocket (https://www.askmehelpdesk.com/showthread.php?t=206625)

  • Apr 16, 2008, 05:16 PM
    TattooSanDiego
    Am I losing money that should be in my pocket
    I recently started working for a tattoo shop where I get an actual paychek and have taxes taken out. Before it was cash at the end of the night and I would have to do the rest around when taxes were due. The shop policy is a 50 50 split, I keep 50% of what I make and they keep the other 50%. Well say I make $4,000 in a 2 week pay period I really only get $2,000 and then that is taxed at about 20% so I'm walking away with roughly $1,600. $4,000 and $1,600 is a huge gap. I had to fill out a W2 and what not when I started. I buy all my only materials and do not get a reimbursement, even though I am an employee. Should I be trying to do something like a 1099 or maybe something else? If someone could please help me I would really appreciate it.
    You can email me at [email protected]
    Thanks!
  • Apr 16, 2008, 05:36 PM
    Fr_Chuck
    First no, 50 percent goes to the shop, they pay their taxes on their part.

    Your income is that 50 percent you make and actually 20 percent is not really enough to be held out for taxes. First of course there is 7.5 to be held out for social security, and the shop has to pay a matching fund for you. The shop out of their money has to pay unemployment tax ( insurance ) on you. The shop should be paying liblity insurance for the shop, and electric, and rent and advertising. So the shop is making a whole lot less than you do.

    But you out of your money have to pay that 7.5 percent social security tax, and the federal tax, which is often a lot more than 20 percent, and then you have in many places state taxes So if you are having less than 30 to 35 percent held out, you may find yourself not paying enough taxes depending of course on how you file, single married, number of dependents and so on.

    You are better off normally as a W2, since they have to pay that matching social security tax normally. But you can still deduct the supplies you use on your job that are not paid back. This is allowed on your schedule C
    ** I think that is the right form)

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