Did you goof and incorrectly classify an employee as an independent contractor? No need to panic. I can show you a perfectly legal way to avoid payroll taxes, penalties, and interest if you’ve incorrectly classified workers as 1099 independent contractors rather than W-2 employees. Want to find out more? I invite you to read my new article titled Tax Tips: New IRS … [Read more...]
Self-employment Tax
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The IRS admits it got it wrong
Nobody’s perfect. Including (as if you didn’t know) the IRS. But when they make a mistake, the IRS admits it and this can be very good news for you. You see, in the past, the IRS said that after December 31, 2008, single-member LLCs were subject to corporate payroll tax treatment. Now the IRS and the Treasury Department admit that they did not intend to eliminate the … [Read more...]
How to choose the right business entity?
Is your business entity providing you with the greatest possible tax-deductions? Does it provide you with adequate protection from liability? If answers to these questions are important to you, (and they should be!) don’t miss my new article. It will explain how the four basic business entities produce tax deductions and provide liability protection. You’ll also learn … [Read more...]
How to avoid the self-employment tax
Are you subject to the self-employment tax? The answer is “no” if your activity doesn’t rise to the level of a trade or business. And if it doesn’t, you could put a lot more money in your pocket. That’s because you won’t have to pay the nasty self-employment tax. If you want to learn how the IRS and the courts determine whether your activity is a trade or business (or … [Read more...]
How to audit-proof your S corporation salary
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...]