If you’re the owner of an S corporation, you can save a lot of money on self-employment taxes. How? By paying yourself a low salary and taking the remaining profits as distributions which are not subject to the self-employment tax. But as is often the case with the tax code, the devil is in the details. Which is why I urge you to read my must-read new article titled Tax … [Read more...]
Employees
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How to prevent payroll embezzlement
Watch out! The wages you think you’re paying to your employees, and the payroll tax deposits you think you’re sending to the IRS, may be going straight into an embezzler’s pockets. That’s why it’s so important for you to read my brand new article titled Tax Tips: Prevent Payroll Embezzlement. Three ways our fact-filled article can help you: We’ll tell you three easy ways … [Read more...]
Is a SEP right for you?
In Part 2 of our discussion of the best small-business retirement plans, we take a close look at the Simplified Employee Pension (SEP) option. It’s the defined contribution plan that’s the easiest to live with. But will a SEP meet your specific needs? You’ll find out when you check out my latest article titled Tax Tips: The Best Small-Business Retirement Plans: Part 2, the … [Read more...]
Get your independent contractor’s tax status right
Do you work with independent contractors? If you do, it’s vitally important to get their tax status right from day one. Why? Because if you get the contractor’s status wrong, and they are considered by the IRS to be “employees,” you could suffer major penalties. That’s why it’s so important to read my latest article titled Tax Tips: Tax Lawyer Is an Employee, Not an … [Read more...]
How to manage your S Corporation fringe benefit problem
It’s a fact. Your S Corporation may not give you the tax-free fringe benefits you want. In the good old days, the S Corporation avoided double taxation, reduced self-employment taxes, and also gave you a bunch of fringe benefits. Well, sadly, the good old days are long gone (since 1982). Which means that when the S Corporation is your 2011 business entity of choice, you have … [Read more...]