What Is $2 Insurance Deduction on Paycheck?

[ponvn591]

I noticed that we get $2 for insurance taking out our checks. What is that for?

And since we don't get taxes taken out like other jobs, do we have to pay all that back at the end of the year?

 

[leftymac]

Yes, you are responsible for taxes. Consult your tax planner or accountant as to what the best method would be for you.

 

[Sheila]

The insurance is in case you or a customer gets cut/injured during the demo.My first year of business I was fine when it came to taxes because I was using my paychecks to support my addiction to the product. I basically made a $5 profit for the year. The rest of it went into new products to show/use at my shows & booths and supplies for shows. But once you reach a point where you are actually making a profit, you need to consider putting a portion of each check into your savings so you don't get surprised at tax time. If you normally break even or get a return at tax time, consider just doing a flat 1/3 of each check into your savings account. It will probably be sufficient to offset if you end up having to pay for the first time. Chances are, you'll probably have a little extra "bonus" left over that you can use toward the yearly Kit Enhancement Month! Obviously, everyone's tax situation is different ... so there's really no set rule that will work for everyone! But like I said, if you usually get a return or usually break even and do not owe the IRS, then 1/3 should be sufficient.

 

[Melissa78]

And what if you are you're own tax planner? hehe

As soon as I get my commission deposit I automatically move 30% to a separate acct for tax purposes. I know I'm over doing it (25% is closer in my case) but I'd rather have a great savings going then owe. Plus with being new, and having a FT job, not quite sure where I fall in the new tax brackets. If you do use someone for your taxes, I would consult with them as well. I'm just too cheap. It will all depend on your current income level, marital status and exemptions claimed in addition to whether or not you file long/short, itemized/std etc. See, Keith was right...consult a tax expert.

 

[ponvn591]

Well I am a student and this is my only job. I am still under my parents taxes. I heard that students usually dont pay money at the end of the year, but PC doesnt deduct taxes out our checks. I just don't want to owe alot of money at the end of the year bc PC doesnt take taxes out

 

[Melissa78]

You usually don't owe b/c your parents claim you (most likely). You still owe Uncle Sam for PC though so in your case, I would set money aside.

 

[Sheila]

I agree with Melissa, set aside some money to pay for taxes. If you don't need all of it, then (like I said before) you can use the extra on Kit Enhancement Month in April.

 

[Melissa78]

Sheila - I thought I was good with "savings"...now you gave me the kit enhancement idea...so much for savings! haha