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Niklas operates a planning business in the greater Boring, OR, community. Niklas has been offered a position as an employee of a competing LLC.

Niklas operates a planning business in the greater Boring, OR, community. Niklas has been offered a position

Niklas operates a planning business in the greater Boring, OR, community. Niklas has been offered a position as an employee of a competing LLC. The numbers below are Niklas' best estimates of his cash flow as an independent contractor and as an employee. The estimates of retirement and medical are comparable in the two scenarios. As an employee, the company will match Niklas' contributions and the company will provide the medical insurance. Calculate Niklas' after-tax cash flow in the two scenarios. Employee--compensation Social Security MHI Medical Retirement QBI Taxable income Change in tax Cash flow Unemployment and Workers' Comp Contractor--net revenue before the following Social Security MHI Medical Retirement QBI Taxable income Change in tax Cash flow $11,400 $6,000 $11,400 $12,000 $98,500 $124,250

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