Taking out taxes on up-front commission

Discussion in 'Accounting and Legal Advice' started by PrePaidLegal, Jun 24, 2010.

  1. PrePaidLegal

    PrePaidLegal New Member

    I get paid up-front commission on a daily basis through my business. The only thing is, I'm not sure how much of a percentage I need to take out and set aside for taxes. Is there a special formula I should use or a general rule of thumb?
  2. mreese601

    mreese601 Member

    Well, it really will depends on how much you project to make. If you not making 50,000 then it would be safe for you to put 33%. But make sure you keep up with all your business expense because all your expense can be written off.
  3. FreeCashMan

    FreeCashMan Well-Known Member

    You may want to consult some home business accounting books from the library or an actual accountant to get proper advice.

    And then there's always a Google search [​IMG]
  4. dslavinski

    dslavinski New Member

    yes 33% is a good amount to set aside and when tax time comes and you only owe 29% you can take a nice vacation on the other 4%. I always set aside more than will be taken so i get a little bit of money to treat myself with in the end.
  5. BabyStepsMama

    BabyStepsMama New Member

    Best thing to do would be to consult a tax lawyer. I use my companies lawyer through my benefits package.

    Lawyers are not as expensive as you may think.

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