Would You Choose Self-Employment?

I have never wanted to be self-employed.  I don’t mind working “for the man”. I have worked out of my home before, when my children were very young and it felt like the work was always there, always waiting to be done. I like the structure of my work days.  Mr. A, on the other hand, has always preferred self-employment, and it was only in the last couple of years that he was able to make this dream of his come true.

Luckily for him, I like bookkeeping and working with numbers.  A lot. Enough to do it free.

But I found out at June Walker’s site that if Mr. A hires me to do his books, we can gain some tax benefits from it.  I didn’t think it would help at all for Mr. A to “hire” me, because I figured the money he paid me and used as business deductions would simply be added to my earnings (see Tax Situation at this link). That is true, but apparently there are some other things like having a medical plan, long term insurance, funding your spouse’s pension, just to mention a few things. I thought it very interesting that Mr. A can hire me, sign me up for a health benefits plan (which would cover “my” family, which would include my spouse, Mr. A!) and it will be a deductible business expense.

I ordered June Walker’s book Self-Employed Tax Solutions a few days ago. It can be written off as a business expense!  I love learning and Mr. A’s business gives me lots of opportunity to learn almost daily about new things.   Especially about taxes. All kinds of taxes.

It’s probably a good thing I’ve never wanted to be self-employed because even if quit my “day” job, and Mr. A hires me, I’ll still be working “for the man”. 🙂

What about you, is self-employment in your future?  If it is, be sure to check out June Walker’s site.  I have no affiliation with Ms. Walker but I have found her site to be very informative and enjoyable.

Mrs. Accountability

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2 comments to Would You Choose Self-Employment?

  • Oh please tell me you’ll do a review of June Walker’s book once you read it! I am so excited at the concept of being able to hire my spouse and give him full health benefits I almost choked on my water when I read it!

    There was a site I found (www.hireyourspouse.com) but I’m always a little scared by crappy looking websites and don’t know if I even need the pretty expensive spousal employment contract he offers on the site. It’s confusing, because I’m afraid if I somehow “mess up” the hiring process with my husband … it could come back to bite us in the butt down the road and man, I am scared to get in trouble with the IRS.

    If June explains *how* to hire your spouse…well…that would solve my problem.

    Look forward to hearing if you liked the book!

    [Reply]

    Mrs. Accountability Reply:

    Hi Jenny! Hey, that’s a great idea to do a review of her book. The one drawback that I can see right off the bat is the bookkeeping end of it in that once you hire your spouse you’ll need to begin filing Form 941 on a quarterly basis with the IRS. There should also be a quarterly report to fill out for your state. I already know the ins and outs of that since I do that part of the business for a small company. So that is the one level of complication that I can see right off the bat.

    [Reply]

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