Identify at least three 3 key benefits that you could negoti

Identify at least three (3) key benefits that you could negotiate with your employer or potential employer that could reduce your tax liability. Provide specific examples of such benefits that are real life experiences.

Imagine that a potential employer has given you the opportunity to work as either an employee or an independent contractor. Identify at least three (3) pros and three (3) cons of each option. Discuss the primary tax consequences or tax deductions of each classification that you believe provide the greatest opportunity to reduce your overall tax liability. Provide support for your rationale.

Solution

As an employee Tax benefits:

1. Have your employer invest in your education

2. As employer for investment in 401(k)

3.Health Insurance from employer and other medical benefits

4. Life insurance from employer

As a contractor:

1. Work related deductions from taxable salary

2. Employer cannot withhold tax:Self-Employment Tax Implications

3. Accrual Method Accounting

4. Pay Quarterly Taxes