Amazon, Click Bank and CJ!
Today is the day, I entered verification PIN when the Amazon called me... How exciting! (For me at least...)
I also joined Click Bank and Commission Junction.
During the last days I had to deliberate thoroughly about the channel I'm going to bring the money to me. The taxation rate for individual's income in our country is quite high. So I had an idea to channel the money through the company, my employer. However it would present some problems due to my website(s) ownership. The third option is that I become a registered self-employed individual. And I believe this is the solution, when it comes so far and I'm going to make such money, that I'll be able to cover my employment expenses.
I'm just curious - how do you do it in other countries?
Špela
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You don't have to report it here in the U.S. until you exceed $600 so for now I don't have to worry about it! After that, I will have to report it as extra income on my normal tax return and I will get taxed at the same rate as my other income I believe.
Here in the US, if you decide that you are going to take it as an income, you must declare it as such (minus all business costs). Then your percentage of tax is based on how much your net income was for that tax year. That's on the federal side.
Congrats on the move forward with Amazon!
Greg
It's something similar here. But the taxation percentage is much higher for additional incomes then for regular wages...
We will see about Amazon :)
Wow.
Well we will see how things change with a new President coming aboard next year.
Greg
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Seems rather a crime that you have to pay to employ yourself
If I logically consider it, yes... But still - the costs (should) go for the basic part of health insurance, retirement, parenthood and unemployment insurance. It's rather different system as U.S. :) We do have 12 months of "paid" maternity leave, just for example... :) And I have (for twins) 15 months + 27 days because of premature birth. A lot of time to "spend" in WA. ;)
As you probably know, in the U.S there is no mandatory, paid maternity leave! Not even a day! It is very hard for working mothers. I work for the State of Alaska and we have more paid leave than most other employers in the U.S. Expectant mothers try to save up as much leave as they can but that is usually about a month. After that they can ask for leave donations from other employees or go on unpaid leave. Everyone I know here has taken about 6 weeks off after the birth of their child, then back to work. I am glad I have not had to go through that.
Then they have to pay $600-$1000 per month for daycare!
Oh I see, you have to pay in to get something out. And the arrangement is not just for employees, like in The Netherlands. The only thing self employed people and business owners have to pay into now is double health insurance premiums (once for employee, which they aren´t, and once for business owner).
Although there is talk here to change things more to yours when it comes to the self employed and sole proprietors, most of whom neither want nor need it.
When I ran a business in the US, health insurance was optional and all health costs a tax deduction, as well as all business costs, including getting E2 visa and flying over. I really liked the arrangement then and there.
WOW, I knew it was bad, but not so bad! :( You see... In our country about 40% of the wages go to the mentioned insurance fond. And this is the reason we "can" afford to take so long and paid maternity leave. I just can't stand the idea to leave my child in daycare at 2 months ... :( (I guess we are a little bit spoiled with our social "post-socialism" system.)
About daycare here: if you are one of the lucky ones that get public kindergarten for your kids, you only have to pay 77% of the whole cost (the remain is paid by local communities), and if you have lower incomes, you pay even less. In the September I will be paying about 150 EUR for all my three girls in public daycare... :D
But if you have to put your kids in private daycare, you are in the same position as in U.S. ...
The only thing I have to consider here is that you have quite a better ratio - wages : life expenses ...
All kids can get into public kindergarten here but not until they are 5 years old. So for the first 5 years you are on your own.
Actually the taxes(in The Netherlands go up with your wages, but the lowest is about 44% including 7% or so for healthcare. The rest of the healthcare premium is taken out of people´s bank accounts by the health insurers.
The next tax rate is about 50% and the top rate is almost 60%, both including health %.. This is topped by provincial taxes, local taxes, and water council taxes. Adding up to 20% to the tax burden.
Parents get a child tax credit, a day care tax credit, child support, and education is free from kindergarten through secondary education. Also employee mothers get lots maternity leave for free. Six to nine months. And employee fathers are entitled to a day or so off a week, for free, during the first year of their newborn´s life.
Café and restaurant owners get taxed to the max. A glass of beer they sell for 3 euros, leaves them hardly a few dimes in profit.
Oh, forgot, people pay taxes for state pension and long term unemployment too, plus premiums for short term unemployment and sick leave.
OK, that's a horror... :(
Tessa, all in all it is not so different here... However I didn't know that beer is so expensive because of taxes in Netherlands... ;)
I think you have quite generous system for parents, but have more taxes than we do. In the future I believe we will be adding additional taxes, because our overall system will collapse otherwise...
Hi Spela, it´s a good thing I hardly ever drink beer! On hot summer days I´ll get a few bottles in the organic store and drink them on my patio.
I believe adding taxes is not the way to prevent such collapses, because sooner or later no taxes can be added and the collapse inevitable. It´s better to help people become less dependent on others or a system for charity, like WA does.
Yes, Tessa, I couldn't agree more with you on this topic! Adding taxes inevitably ends up in poorer society. And there is no more money left to be collected. I hope we are not heading that way...
Take care and I hope you enjoy your summer! :)