There are many costs associated with employing people – even if that’s just yourself, the article states. Some of these expenses may be more surprising than others.
For example, many professionals leaving an employer to strike out on their own are aware of common benefits costs they will have to assume, including health insurance, retirement savings accounts, and even general liability insurance.
But what about payroll taxes, including unemployment, workers comp, Social Security and Medicare taxes? The self-employed may be surprised at the cost of benefits coverage, Suarez says in the article. Because employers pay a portion of these costs, the full amount an entrepreneur becomes responsible for can be a shock.
Skimping on coverage may not be a good idea. Complications for those in business for themselves include recent laws such as the Affordable Care Act that penalizes people for not having health insurance, according to Suarez.
Read the article: Quitting your day job? The basics on benefits coverage for entrepreneurs (Business News Daily, 3/28/16)