It’s true that the Affordable Care Act lets you pay for your employees’ health insurance. But to do so, you have to increase their taxable compensation. That’s no bargain because doing so means higher taxes for both you and your employees. Ouch! Want to learn tax-advantaged ways to pay for employee health insurance without violating the Affordable Care Act or exposing … [Read more...]
Fringe Benefits
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To pay your spouse, or not to pay your spouse. That is the question.
If you operate your business as a proprietorship and hire your spouse as an employee… Should you pay W-2 wages to your spouse to make sure that she or he is a bona fide employee? Can you give your spouse a nice fringe benefit by establishing a Section 105 medical reimbursement plan? Can your Section 105 plan be the sole source of your spouse’s remuneration? These are … [Read more...]
The truth about “defined-contribution health plans”
After the Affordable Care Act (Obamacare) became law, a bunch of ads have popped up on the web touting “defined-contribution health plans.” They’re billed as perfect for business owners who have fewer than fifty employees. The trouble is, the tax code makes no mention of defined-contribution health plans! FACT: These plans are purely the creation of marketers and can get you … [Read more...]
How to escape payroll taxes on S corp. health insurance
Good news! If you know the tax law… You can pay zero in payroll taxes on the cost of the health insurance fringe benefit — the benefit that your S corporation has to put on your W-2. That’s right. According to IRS Announcement 92-16, you don’t have to pay a penny in payroll taxes in certain situations. What are these situations? How can you use the tax law to keep more … [Read more...]
Yes, you can afford group health-insurance!
If you’re like a lot of small business owners, you want to cover your employees with group health-insurance, but you’re worried about the costs. That’s why you should read my new article. You see, I can show you how to… Cover your employees with group health-care coverage Limit your annual insurance costs, Get a tax deduction Give tax breaks to your … [Read more...]