_________________________________________________Let’s start with a definition. A “statutory employee” is an independent contractor who is treated as an employee by statute for the purposes of tax withholding. _________________________________________________ Are you a “statutory” employee? Then you should know that, if you’re qualified, you can create a Section 105 … [Read more...]
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No FICA On Health Insurance for the More-Than-2% Shareholder-Employee
No FICA On Health Insurance for the More-Than-2% Shareholder-Employee Are you running an S corporation? Then you need to know the answer to this important question… How should your S corporation treat the more-than-2% shareholder-employee for Social Security, Medicare, and federal unemployment taxes? You’ll learn how we answer this question and many others when you read … [Read more...]
Beware: IRS Error in Rental-Property Deduction Publication
Nobody’s perfect. And that’s certainly true of the IRS. But let me be specific about how this hallowed institution messed up… The IRS publication on rental properties contains a serious error. It states that you may not deduct your premiums on mortgage insurance expenses. This is flat-out wrong and we’ll tell you why when you read my new article titled Tax Tips: Beware: … [Read more...]
Don’t Make This S Corporation Health-Insurance Deduction Mistake
Do you own more than 2-percent of your S corporation? Then be sure to follow the special IRS rules that allow you to deduct your health-insurance premiums. These rules are particularly important if your S corporation employs your parents and/or non-dependent children who don’t own any stock in your corporation. And be aware: If you handle things the wrong way, your … [Read more...]
How to Reimburse Medicare When You Have Fewer than 20 employees
Do you structure your business as a sole-proprietor, partnership, S or C corporation? Do you have fewer than twenty employees? Then our new article makes “must” reading. Why? Because we’ll explain how new IRS regulations allow you to reimburse Medicare parts B and D to your Medicare-covered employees. If you want to learn how to comply with the law and avoid painful … [Read more...]