Tag Archives: Insurance

Business

What Is Your Self Employment Worth?

This looks like a strange question being asked, especially if you’ve been thinking about going into business for yourself or you’ve been in business for a while, but it’s got a big meaning. Moreso for those new to business than those who’ve been in business for a long time, it seems most people have a problem in figuring out not only how much they should charge for services but how much their worth… aka, what their value is worth.

Premier Wynne announced the successful completion of Project Advantage; a program that enabled a group of four medium-sized, family-owned bakeries to collaborate to increase production and create new jobs.
Premier of Ontario Photography via Compfight

Even though every business is different, there needs to be a starting point one should look at when they first get into self employment, and then try to grow from there. We’re going to offer a few things to consider.

The first thing to consider is how much you’re making working for someone else. If you’re making at least 25,000 a year, your initial goal should be trying to earn at least 50% more than you’re making now, with your goal within a couple of years to be making at least 100% more.

Why? You have to consider what you’re losing by working for your present company. The cost of health insurance, even if you’re paying some amount for coverage at work, is going to go up drastically, at least 50% over what you’re presently paying. You’re also expected to pay it in a larger lump sum monthly as opposed to paying a little bit every week or two weeks. True, you’ll have options for coverage, and in most states there are multiple choices based on your state’s ACA (affordable care act) exchange, but it’s something to consider.

While we’re on insurance, if you had dental, vision, or any other type of insurance that’s now coming out of your pocket as well. These aren’t overly expensive to buy on your own unless you have a physician you already like, which can be problematic in some states or smaller communities; then you’ll likely have to pay more to keep that person.

The second thing to consider are office supplies and other equipment. You don’t have an employer to rely on for these items, and even though you get to write them off on your taxes, the amount up front doesn’t benefit you.

The third thing to consider is time off. Right now you probably get vacation and sick pay; that’s not happening when you work for yourself. This means you’re going to have to be disciplined enough to put some money aside for those rainy days unless you can work from home, possibly in bed via a laptop or tablet… although you might not feel like it.

All other bills aren’t mentioned because if you started off making the same amount of money you were making while working for someone else you’d probably already figured out how to pay those bills while still being able to eat and put gas in your vehicle.

Now, notice we started talking about making more than 25K. If you’re making less than that, or not even close to that amount, you’re going to want to think about making at least 75% to 100% more up front to cover those same items as above. The difference maker is that you’ll probably qualify for a bigger subsidy from the ACA, thus you won’t have to worry about paying for health care, and you might even get a reduction on dental coverage; vision care is still on you.

These aren’t set in stone, but it’s a pretty good guide to start with. What you have to do if you consider working for yourself is change your mindset from employee mode to professional mode. Professionals have the right to make more money because they have more expenses. As long as you have a place to start, you can determine what you want to make from there for your products or services.
 

Health Care

5 Things You Should Know About Health Insurance

In a few months, it’s going to become mandatory for people who have no insurance coverage to either purchase something for themselves and their families or pay a penalty, what the federal government calls a surcharge and what the Supreme Court calls a tax. Either way, something’s coming, and I feel you should know some truths about it all. Here’s 5 things you should definitely know.

1. Yes, you will owe something to the federal government if you don’t buy health insurance, but just how much? It’s not as bad as you might believe. Confirmed with the office of Senator Charles Schumer on New York, if you’re single it will cost you around $90 a year. If you’re married or filing as a family the amount is less than $300. To put both of those in perspective, you’ll pay more in taxes because of your cellphone and cable TV.

2. A major benefit of the health care plan is that you can’t be turned down for pre-existing conditions anymore. This is probably the biggest benefit of the health care plan because it was prohibitive against pregnant women and anyone who might have even a relatively simple disease like diabetes from switching jobs because they might lose coverage for upwards of 6 to 12 months, or a horrible disease like cancer that a family member might have and automatically be disqualified if you changed jobs.

3. How it’s going to work is that insurance companies already in your area will put together plans based on federal guidelines that will give you basic coverage for emergency services and inpatient coverage. There will be multiple levels, anywhere from 2 to 5 different plans for most insurances, so you can somewhat tailor what you want.

4. There’s nothing saying you have to purchase a federally backed health plan. If you’re a small business you should look into coverage through a local chamber of commerce as they often can provide lower group rates and more covered services based on having multiple participants in the plan.

5. If you buy your own health insurance, you actually get to write it off your taxes. That and any other medical expenses, as long as you keep all of your receipts. That means you just lowered your out of pocket costs for what is a very important investment in yours and your family’s health protection.