How
You Can Reduce Your Taxes and Increase
Your After-tax Income with NOI
Consider Self-employment's Disadvantages:
- You pay the full
15.3% FICA tax
- Your health insurance
is paid with after-tax dollars -- costing you more
- Benefits cost more
and often provide less than for corporate employees
- Credit approval
often more difficult without a payroll history
- Required to make quarterly estimated tax payments or pay penalties and interest
Now Consider the Advantage:
|
Self Employed |
NOI Advantage |
|
|
Annual income |
$45,000 |
$45,000 |
|
Health insurance |
( 3,600)* |
|
|
FICA |
(6,885) |
(3,442)** |
|
Federal and state income tax |
(11,250) |
(10,350) |
|
Subtotal |
26,865 |
27,608 |
|
Health insurance |
( 3,600) |
|
|
FUTA/SUI |
(1,431) |
|
|
Fee for NOI |
( 600) |
|
|
Workers' compensation (disability) average |
________ |
__( 293) |
|
Net spendable income |
$23,265 |
$25,284 |
Net Benefit:
$25,284 (NOI) minus $23,265 (self-employed) equals $2,019 more take-home pay.
Contact NOI for a comparison based on your annual income.
|
* |
This illustration assumes no difference in cost of health insurance. The NOI program affords $200 deductible, $10 per visit, $600 maximum deductible per family, and a $5 million aggregate coverage. |
|
** |
As a NOI employee, 50% of the Social Security cost becomes a business expense (deducted from gross income before taxes) vs. the self employed concept where the gross income is fully subject for federal, state, and Social Security taxes. |
