It’s a fact… The Affordable Care Act (Obamacare) doesn’t apply to a business that has only one employee. That’s good news. Your spouse can benefit from what I call a “105-HRA” (Health Reimbursement Arrangement). When you design it for your spouse, the plan reimburses him/her for family medical expenses. The reimbursements are business-expense deductible on your tax … [Read more...]
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SEP or 401(k); how to retire early (and in comfort!)
If you want a carefree (and scarefree) retirement, now is the time to act. Start by paying yourself first. You work hard and deserve it. Next, take advantage of a SEP or 401(k) retirement plan. The tax code lets you sock away your “contributions” in a tax-deferred plan that lets your money compound over the years tax free. (You pay tax when you withdraw funds years … [Read more...]
New tax-deductible, penalty-free health plans for small businesses
Here’s good news for small businesses! Starting on January 1, 2017, you can establish a new “Qualified Small-employer Health Reimbursement Arrangement” (QSEHRA). The QSEHRA was created to help small-business owners help their employees pay for their health insurance and other medical costs. And without worries about the per-employee, $100-per-day penalty. (That’s $36,500 … [Read more...]
New law erases $100-per-day penalty!
Are you one of those small-business owners who stopped reimbursing (or paying for) your employees individually-purchased health insurance? Did you simply add the cost of that insurance to your employees W-2s? If you did, you were out of compliance with the Affordable Care Act and were subject to a $100-per-day penalty of up to $36,500 per-employee, per-year. Well, here’s … [Read more...]
How to avoid unpaid payroll-tax penalties
If you’ve failed to pay the payroll taxes you owe, you could be in serious trouble. You see, the IRS has a mechanism called “The Trust Fund Recovery Penalty” that can make you personally liable for the unpaid trust fund taxes, regardless of the kind of business entity you’re running! How does the IRS use the law to come down hard on payroll-tax debtors? And what can you do … [Read more...]