S5E9: New England Fog | Best State to Start a Business | Contractor or Employee, what makes sense?

09/19/24 • 39 min

Disclaimer: The information in this video does not constitute Financial Advice. Consult with a Financial Advisor before making any decisions regarding your finances.
This week, Pam and Francis dive into a hot topic: the real difference between being a 1099 contractor and a W-2 employee. They break down how each status affects your paycheck and taxes, plus what you need to know about the self-employment tax for contractors. They also tackle the question: if you're earning around $250K, when might it make sense to switch from contractor to employee?
In our beer segment, they’re cracking open a New England Fog IPA from Aristaeus Brewery. Pam and Francis share their thoughts on the flavors and chat about how IPAs have evolved over the years.
Plus, Pam highlights a recent article on the "Best States for Small Business," giving a shout-out to Florida and Texas—two standout states for entrepreneurs.
📰 On this week's What's News:
https://smallbiztrends.com/lendio-best-place-to-start-a-small-business-2024/
Today's Brew🍺: New England Fog, Aristaeus Brewery
Check out Aristaeus Brewery: https://www.aristaeusbrewing.com/
🍻 The P.B.K.P.I (Pam's Beer KPI) Scale, for reference ⚖️:
1. I'm NOT touching it
2. It's sippable...
3. I'd drink it again if you gave it to me
4. I'll order it from the menu
5. I'll scour the ends of the earth to find it
About the Brewery:
Aristaeus Craft Brewing Co. is an open-concept nano-brewery in Langhorne, PA. Their taproom features indoor and outdoor seating with 12 taps that serve a variety of true-to-style beers and hand-crafted nitro cold brew coffees, as well as wine, hard seltzers, and specialty cocktails.

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Produced by Francis Plata & Forward Press Media: www.forwardpressmedia.com

Explicit content warning

09/19/24 • 39 min

Cash Flow with Pam Prior - S5E9: New England Fog | Best State to Start a Business | Contractor or Employee, what makes sense?

Transcript

00:00:00.280

When you become an employee and say, I still pay you $3,000, now, that 15% gets split up, I pay you 3000, but I withhold seven and a half percent from what I give you, and you get the net of that. So I'm taking your tax out, half of your tax out of your pay. I have to pay an additional 7.5%. Oh, okay. Because now it's not self employment tax, it's employment tax. And what happens is, when you're a contractor, you're responsible for the whole 15% of this. This is what'

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