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An Introduction to Taxes: How You Pay and File
Everybody knows that there are taxes that have to be paid - and if you live in an area that charges sales tax, you are probably aware of that type of tax from a very early age. Sales tax and income tax are some of the most common types of taxes that...
Don't Wait for Tax Time to Look at the Bottom Line
A curious thing happens to entrepreneurs in the spring of every year. They wake up one day and realize they had better figure out how much money they made last year so they can pay their taxes. But wait, shouldn't a business owner already KNOW how...
Monaco Might Lose Its Status of Personal Income Tax Haven
That Monaco is crowded with celebrities is no piece of news. Since 1869, when the personal income tax policy became favorable, Monaco attracted very many individuals with high net income, such as movie stars, sporting stars etc. who became...
The Benefits of Incorporating in Florida
There are many benefits to Incorporating in Florida. For one, there is an able work force, reflected by the fact that Florida’s unemployment rate is consistently lower than the national rate. Florida is the center of more than a few thriving...
The Benefits Of Incorporating Your Business
What do General Motors, Microsoft, AT&T and many other major businesses in America have in common? They’re corporations. A corporation is a separate legal entity that functions separate and apart from its shareholders or owners. You can...
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A source is a source, of course of course...
A source is a source, of course of course...
Written by Aaron Colman
info@ibasics.biz
http://www.ibasics.biz
In the beginning, people hunted animals... grew crops... and lived close to the people they worked for. In fact that was one of the big plusses in working for someone else. If you worked for a local king, his castle and guards would protect you from outside armies, while providing a means to settle domestic disputes.
As time went on, governments became less about getting work done and more about collecting taxes and providing for the general welfare of it's people.
In the corporate age, people would come to work for a central agency and that organization took on many of the same roles as the kingdoms of old.
Times have changed some. Today, with the advent of a wide-spread Internet some tasks can be done by people anywhere in the world. If this trend continues, many projects will end up having it's work "distributed" across a large area. This is known as outsourcing.
Outsourcing has become very controversial as many people feel that their jobs are being shipped overseas with no potential for getting a new one, but there's a definite upside to domestic outsourcing.
Domestic outsourcing is different from off-shoring. Domestic means that you're outsourcing to someone else in the same country or area. Not only are you providing for your local community, but there's a real cost-to-benefit increase in staying in a local jurisdiction. When you offshore to someplace far overseas, there's not a heck of a lot you can do if they decide to blow you off. It's just not feasible to take someone to court overseas for a few thousand dollars. This means that outsourcing projects overseas comes with a definite increase in risk associated with the decrease in cost. This shouldn't be surprising as most increases return
come with added risk... but there is a reliable way to improve your returns without adding this risk. And that is...
Domestic Outsourcing.
Domestic outsourcing IS the wave of the future. Large corporations are being overtaken by the large waves of competition from smaller, more efficient, organizations. While some large industrial applications can never be outsourced, many can be.
Here are some things to consider when outsourcing a project:
The Pros:
The biggest decrease is in cost. If you have only a small project that needs done, why go thru the hassle of hiring someone and paying all of those taxes and related fees? Not to mention the potential legal issues of hiring a staff. Liability issues, discrimination laws, the list is huge.
The next benefit is a decreased management overhead. This is really important if you're a small business. You shouldn't be spending
money hiring a manager when money is too tight
to effectively advertise. Simply hire someone as an independent contractor and arrange an agreement to pay them based on performance.
Labor is easier to find. Hiring means asking around, getting referrals, collecting resumes, placing classifieds, posting job lists, the works. Hiring out means calling a temp agency, placing a help-wanted on guru.com or one of the other work @ home website, or one a dozen other super easy ways to find quick work. You have the benefit of a high supply of workers, low demand for work on your side.
The Cons:
The biggest negative reduced accountability. In a traditional employment scenario you've got boss looking over each person's shoulder reminding them what their job is. Out-sourcing is not like this at all. It's important to structure payment in such a way that the project gets done. If you spend thousands up front, there's always the risk that they could bail out. This also means that you should take a look at previous work. If they have a habit of being dedicated to their past projects... then they'll probably be dedicated to you too. Due diligence is must. Outsourcing is not for the micro-manager.
Repetitive or long term projects are also difficult to efficiently outsource unless you can get a long-term, reliable, maintenance agreement. Easier said than done. It's much easier (and usually cheaper) to hire someone for $20 an hour to work full time ($40,000k a year) and finish 40 different projects than to outsource each project and manage the risks and payment headache. Especially if you're on a deadline or counting on each project to be done according to tight specifications.
Conclusion:
Depending upon your needs, it may be a good idea to look around at your outsourcing options. I would definitely recommend trying domestic outsourcing first. If you're worried about losing touch with your contractors then hire someone local, if you're willing to assume added risk for improved cost then try your hand in the national markets.
It's a great way to find people with different skills for your organization. Stop wasting your time trying to be the "jack of all trades" for your company and let experts handle the work for you. That's what the efficient distribution of work is all about. Give it a try!
-----------------------------------------------------------
Aaron Colman, helping business make money online.
Web design, custom PHP scripts, MySQL databases and more.
Free e-Course:
Mastering Internet Lead Generation
http://www.ibasics.biz/leads
-----------------------------------------------------------
About the Author
Aaron has been doing this web stuff since '95, back in the days of Gopher yore.
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| Internal Revenue Service |
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| Tax Center - Yahoo! Finance - Tax forms, tips and calculators. |
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| Taxes: Tax Planning, Tools and Advice - MSN Money |
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| Tax - Wikipedia, the free encyclopedia |
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| H&R Block | Taxes, Online Tax Preparation, Tax Software, Filing ... |
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| Taxes & Estates, Tax and Estate Planning Advice - Forbes.com |
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| Essential Links to Taxes |
| TurboTax Premier For Federal Returns 2005 Win/Mac, TurboTax Total Tax Solution Deluxe 2005 with State Win/Mac, TurboTax Basic 2005 Win/Mac... ... |
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| Government > Taxes in the Yahoo! Directory |
| Yahoo! reviewed these sites and found them related to Government > Taxes. |
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| Taxes - Tax News for Home and Business from CNNMoney |
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| money.cnn.com |
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| The Tax Foundation - Educating Taxpayers Since 1937 |
| Devoted to educating taxpayers about tax policy and the total tax burden borne by Americans at all levels of government. |
| www.taxfoundation.org |
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| Welcome to the Vermont Department of Taxes |
| Welcome to the Vermont Department of Taxes... ... Changes to Property Tax Adjustments in 2007 - updated 10/18. - Tax Expenditures Transition Report on ... |
| www.state.vt.us |
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| Franchise Tax Board Homepage |
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| www.ftb.ca.gov |
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| HM Revenue & Customs: Home Page |
| News and information on tax and national insurance, including downloadable leaflets and forms and the latest news on filing tax returns on-line. |
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| Quicken.com |
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| Tax news and advice from Bankrate.com |
| Information on all phases of tax planning and preparation. |
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| Online Tax Advice - Tax Preparation Help - Income Tax Tips |
| Income Tax Tips - MarketWatch offers online tax advice and tips. ... IRS inflation adjustments mean tax break on next year's taxes. ... |
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