hurt so good

I finally worked a full eight hours for the construction job I’ve had since June. Man that hurts so good. Which leads me to my interesting fact of the day: I’m now a foreman. (Sorry… foreperson.) This means I now make 2$/hr more than I did before. In other, yet very similar news, I’m also makeing all of that money, because they’ve decided not to take out taxes. This is intriguing to me. I know that means I’ll have to set aside money for later, but I’m not sure what ‘else’ that means.

Any suggestions?

  • hey… if they pay you in cash, just keep it…

    if not… Paypal’s money-market account is up to 4.95% APR… put her there until next April (or whenever it is a person pays taxes…)

    You are lucky I am in North Carolina or else I’d dead-leg you next time I saw you for that “foreperson” remark

  • Years ago I would say skip the taxes. But, the government says to pay income tax and Jesus set an example for us to pay tax. To give the government what is the governments would be the right thing to do.

    Though, I would take the amount you would have to pay in taxes and invest it in something like a money-market if you can for a short term or even just a credit union savings account (you get a better interest rate at a credit union). Then you will have made a little on what you will have to pay in taxes.

  • yeah, I’m gonna be paying the taxes… but now I’ve found out that they aren’t even sending me any kind of tax information. I don’t get it. I’m sure this stuff happens all the time, but it’s my first experience with it. I’m just a little worried because I don’t have workmans comp or anything.

  • There was a great comment in here from Justin that I accidentally deleted during a spam binge, so here it is:

    Haven’t been here in awhile, but as a business owner: It really depends on what your final income is going to be and what bracket you end up in. All of the money you make will most likely be fully taxable, and the percentage will of course depend on what bracket your in. I’m surprised that they aren’t taking Social Security out (because that’s something that you pay into whether or not you need to have taxes removed).

    It’s been my experience, that if it’s possible to have them take it out (which really shouldn’t be anymore work for them unless they have you hired as a contractor and your getting a 1099 instead of 1040), you should (otherwise that end of the year hit can be a surprise). If they have you as a contractor, then you might want to look into getting incorporated (which isn’t very expensive) and paying in yourself… This would also allow you to write off any expenses you have as a contractor (like I dont know, hard hats? Cell phone for work?)

    Either way, I wouldn’t try to hide it… I’ve seen people get caught for the dumbest reasons (like playing poker, making 10,000 putting it in the bank, and then not claiming it… oops, double whammy for playing poker online (illegal in MN) and tax evasion.