Wednesday, March 11, 2009

Freelance Writers, Web Designers, and Employees May Save Your Small Business From Obamanomics

Obama's stimulus plan puts a lot of extra pressure on small businesses. Obviously 'going Galt' (Atlas Shrugs) isn't practical for every entrepreneur out there. If you think, you can get through this without sacrificing your hard work to Obamanomics. Freelance writers, Web designers, and marketing staff save you from Obama's new unemployment taxes and risks.

There are two provisions in the unemployment stimulus that threatens your small business and probably makes you reconsider hiring. These provisions are going to take some serious coin out of your pocket as they increase your cost to hire new employees.

Small business owners may have to cover part-time employees with unemployment benefits. Many employees are unaware your employer has to pay an unemployment tax when they hire you full-time.

Small businesses may be forced to pay benefits to employees who leave their jobs including for illnesses or disability of a family member.

The best way around this is to give Obama a dose of his own medicine. Consider hiring freelance and 1099 employees. Not only will you save the costs of the extra unemployment taxes under Obama's plan, but you escape paying Social Security taxes for each employee, as well as benefits.
Now, I know I will take some heat from the Obama supporters for promoting this, but Obama's policies aren't small business friendly. In fact, it's predicted there will be a 14% decline in small businesses once these changes take affect. Why would you want Obama to destroy everything you work so hard for so he can pass around free handouts?

In today's economic climate, many people will be happy for the work. They will be responsible for paying their own taxes, which will save you accounting costs. When the economy does turn, and we can throw these bums out of office, you can always offer full-time positions later.
This is a survival of the fittest type of economy, and it's apparent small businesses are going to have to take drastic measures to come out on top.

If you have freelance work, please visit my technical writing and Web design page for more information about my services.

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