Tax Freedom 101 sent item and inside was an advertisement, the above,
which I pulled up.
None Dare Call This Conspiracy? If you read this advertisement you see
how they would break Social Security - for employers have to pay portion
of this - so get rid of it all, and get contract workers.
Someday these "contract workers" who pay big portion to the Agencies
like this, will wake up to find they have no Social Security - for can
you imagine anyone living on what they will receive in wages, for the
Agency who contracts out, takes the portion of the salary and the
portion that maybe would have been paid into your taxes, etc.
Do you think - say We the People decided no more Public Service
Retiremen - especially Congress who are retiring on huge pension, do not
pay into SS and yet, want Americans now receiving minimum wage in
particular to "invest" their money in what - stock market is gambling,
and the day will come when something new comes along and a lot of boys
will go out of business.
We invest in our government and they should invest in their most
important asset - the workers of America or come 30 years from now we
have a lot of street people with no social security, but at public
trough along with people like Congress and Clinton - who line their
nests with golden and silver feathers - at our expense.
Saba - and this article see the conspiracy involved? The Winners and
The Losers?
Discover why America's workforce is converting to the many advantages
of ...
Non-Covered Employee Contracting
Why Employee Contracting?
Payroll preparation is a time consuming task that is not only an
administrative challenge, but a deterrent to profit-making activities.
Additionally, time spent in generating management and government
reports, calculating payroll and unemployment taxes, and creating W-2's
and other forms, could be used in more productive endeavors to increase
profitability.
Today, smart business people are becoming increasingly aware of the many
cost-effective advantages of contracting out, not just for the services
that are needed for their business, but for their workers as well.
For this reason, employee contracting has become extremely popular in
recent years. Under this working arrangement, a business owner contracts
out for the services of a worker by the hour, just as he would a
computer, a delivery van, or any other "item" needed to run his
business.
When an employer contracts for workers through a reliable and reputable
workforce contracting firm such as American Contracting Services (ACS)
as opposed to hiring his workers directly, he eliminates all of the
hassles and headaches of payroll administration. He simply writes one
check to ACS for all of his contracted workers and ACS takes care of the
rest.
Is This Anything Like Employee Leasing?
There is really no fundamental difference between "employee leasing" and
"non-covered employee contracting", except that the latter is not
covered for social security purposes.
The Code of Federal Regulations for Title 20 of the United States Code
at section 404.1001 states at paragraph (a)(2): "If you are an employee,
your covered work is called 'employment'". Section 404.1003 states:
"Employment means, generally, any service covered by social security
performed by an employee for his or her employer."
So we see that not all forms of employment are the same. Covered
employment is the legally defined condition of receiving covered
earnings from a covered employer (i.e., who is using an employer
identification number (EIN) and participating in social security). The
covered employee (i.e., using a SSN and participating in social
security) who volunteers to submit an IRS Form W-4 to a covered employer
will have payroll taxes withheld.
The worker who does not make use of a SSN (i.e., who is not
participating in social security) simply contracts for his services
under his protected right to do so pursuant to Article 1, Section 10 of
the federal Constitution and receives all of his property (labor
exchanged for a wage).
How Does Non-Covered Employee Contracting Work?
ACS can work with all or a portion of a business owner's current
workforce allowing the workers to contract their services back to the
business owner. The contracted workers are entered into ACS's
database and computer payroll system and ACS then becomes responsible
for the administration of payroll. The "transfer" can take place quickly
and smoothly - during even a single pay period - and with virtually no
disruptions or changes in the daily operation, except for the name on
the paycheck.
The business owner simply writes one check to ACS for his workers per
pay cycle and ACS takes care of the rest. The business owner maintains
normal supervision over the workers in his place of business. That means
no more accountant bills, filing 941's, W-2's, etc.
Therefore he can afford to free up more time to concentrate on building
his business, and less time on having to maintain human resources.
The Business Owner Saves Money!
Since the cost of contracting out for workers is normally offset by
reduced or eliminated healthcare and other administrative costs,
non-covered employee contracting pays for itself. In fact, most
businesses realize sizeable savings. An employer can convert all or part
of his existing workforce, such as salaried, hourly or unionized labor
to contracted workers.
The advantages to the contracted worker are that he can negotiate his
own hourly pay which, according to his personal preferences and
financial objectives, may include some, all, or none of the typical
benefits of covered employment. Since the worker is likely to receive a
higher hourly rate of pay in compensation for reduced benefits, he can
pay for his own benefits.
Of course, all such "perks" of employment are really nothing more than
window dressing since each bears a finite annual cost to the business
owner which, if divided by the total hours actually worked over the
course of the year by the covered employee, would merely raise his net
hourly wage.
For example, if the covered employee's hourly wage is $10 and the
additional value of employment benefits provided by the employer amounts
to $4 per hour, then the employer's actual net hourly cost amounts to
$14. Were the worker to receive the full $14 per hour, he could simply
make his own arrangements to procure health insurance and other
benefits, and to budget for his own vacations and retirement.
The Many Disadvantages of Covered Employment
The covered employer must pay 50% matching co-FICA (currently 7.65%
each) on behalf of those covered employees who are participating in
social security. If a covered employee is earning $30,000 annually, this
50% co-matching amounts to nearly $2,300 which the employer must pay out
of his own pocket. Multiplied by 5 covered employees in a typical small
business, this amounts to an extra $11,500 out of the employer's pocket
each year. Of course, if the workers choose not to be covered for social
security purposes, Medicare or other government welfare entitlement
programs, the employer could spend this $11,500 on advertising, on
seeking new markets or in generally expanding his business.
Another disadvantage to the covered employer is the many legal landmines
he may encounter if he fails to adhere to a myriad of state and federal
regulations. These increasingly draconian "rules" dictate what he may or
may not do or say to his covered employees without becoming the target
of a Lawsuit over sexual harassment, discrimination in the workplace,
compliance with OSHA guidelines and a mess of other "red tape".
For many a small businessperson with just a few covered employees,
having to take on these financial burdens has meant the end of the
business, regulated to death and taxed out of existence. And the
completion of all the associated and onerous paperwork has often meant
the difference between burning the midnight oil and having a family
life.
With all this in mind, it's not difficult to understand why many
American business owners have begun turning to non-covered employment
contracting.
The Advantages To Doing Business With ACS
The staff and management of ACS understand that, in our nation of Law,
the responsibility of the individual is to know the Law that authorizes
his or her individual actions, and ignorance of the Law is no excuse.
• ACS has read the law and understands the proper applicability of
federal taxing regulations to the citizen or resident alien working
within the 50 states of the union. For this reason, ACS is in a better
position than most employment, "temp" and leasing firms to uphold and
protect the property rights of the American worker.
• ACS will accept the proper paperwork under the taxing regulations to
stop withholding of income tax, whereby the contracted worker will take
home 100% of his weekly paycheck and can take care of his own retirement
and "benefits" at far less cost.
• ACS will always insist that due process be preserved with regard to
claims by third parties, therefore a Notice of Levy will be honored only
when accompanied, as required by law, by a lawful order (Warrant of
Distraint) from a court of competent jurisdiction.
• ACS will also protect the privacy of the worker. The code of federal
regulations confirms that IRS Form 1099 pertains to employment tax only
and not to income tax, therefore ACS will not issue a 1099 to the worker
who informs ACS that s/he is not a voluntary participant in social
security.
How To Do Business With ACS
If you are a business owner or worker who wishes to engage American
Contracting Services, please complete and return the appropriate
Employer Contact Form or Employee Contact Form available on this site.
Our staff will then contact you to review and prepare the contacts and
answer any questions you might have as to billing procedures.
Note #1: Please note that ACS is NOT licensed to give you tax or legal
advice of any kind. If you need such advice, please consult with a
competent licensed professional who is fully versed in the federal tax
regulations.
Note #2: ACS charges the contracted worker 7% of his/her gross wages for
services - that is, the total hours worked are billed by ACS to the
business owner and, upon receipt, 93% of these monies are then
immediately forwarded to the contracted worker. Approximately 1/3rd
of the time, the business owner will pay the 7% fee for the worker.
When this occurs, the worker is able to take home 100% of his/her
paycheck.
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American Contracting Services
P.O. Box 1482, Vernal, Utah 84078-1482
Frank Benlin, President
(801) 741-8356 Voice & Fax
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A. Saba
Dare To Call It Conspiracy
A. Saba
Dare To Call It Conspiracy
http://www.americancontracting.com/?219,36/
