"Cherokee Cruiser" <cherokeecruiser2002[at]yahoo.com> wrote:

- quote -

I have to agree with Dave on this one. There's experts
everywhere until that IRS letter comes:-) If her "employer"
is her "employer" and pretty well dictates how and when a
where she works...even if it IS part time, he likely should
be paying half her payroll tax which is 7.65% and providing
her with a W-2. In other words, TREAT her as an employee.
Wonder what code citation he gives you that protects him
from this little question?

Mike Lewis, CPA

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"Cherokee Cruiser" <cherokeecruiser2002[at]yahoo.com> wrote:

- quote -

If her boss is a tax expert as he is seemingly holding
himself out to be here, why hasn't he done this for her
already?

- quote -

Hire a professional to make a proper determination. You
don't rely on anonymous advice to a facts and circumstances
decision.

--
David M. Woods, EA
Boston, MA 02109

Postings here are general information only and not to be
relied upon as advice.

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My wife works as a hair stylist in a salon. Since her
employer does not withhold taxes, she is considered to be
self-employed and is paying nearly 42% in Federal and state
taxes. Her boss mentioned it might be advantageous to set
up a corporation or LLC to lower her tax rate. I have been
doing some research online, but I cannot decide which would
be better. She only works part time so her salary is below
20K per year. Is it worth it and which would be better?
LLC or Corporation. Thanks for any responses!

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