Here’s a fact that every business owner should know… Depending on how you’ve structured your retirement and medical plans, our year-end tax strategies can slash your 2014 tax bill by $5,000 to $15,000 or more! Does this sound too good to be true? Well, it is true and I’ll prove it to you. In my new article, I’ll explain seven killer strategies that can save you a bundle. … [Read more...]
Section 105 medical plan
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The smart way to pay for employee health insurance
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...]
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...]