It’s a fact… Setting up a tax-advantaged Section 125 plan is a great way to provide health insurance for both you and your employees. There many great reasons for this. Here are just two: A Section 125 plan makes your business more competitive by attracting and retaining the best employees. You save payroll taxes on every tax-free dollar your employees pay for premiums. … [Read more...]
Medical (for 105 plans see Section 105 medical plan)
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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...]
How your S corporation can avoid Obamacare penalties
Watch out! The Affordable Care Act (Obamacare) assesses nasty penalties if your business pays the individual insurance-premiums of your employees. (Under Obamacare, you simply can’t deduct those premiums!) As an S corporation owner, this could be a big, expensive problem for you. To make matters worse, the IRS hasn’t given definitive guidance on how Obamacare affects S … [Read more...]
Obamacare and your Section 105 medical plan
It’s a fact… You don’t have to offer your employees group health-care coverage if you have fewer than 50 employees. But what happens if you have more than one, but fewer than 50 employees, and you want to give your employees health-care benefits? Well, I’ve got good news for you. Though Obamacare does have a dramatic impact on Section 105 medical plans, you can offer … [Read more...]