If you operate your business as an S corporation, I have some good news for you.
Because of the toll the pandemic has taken on business,
the IRS is lightening up on S corporations.
This means important new benefits for you!
Oh, I know that in the past, the IRS has been tough on S corporations in many ways. That’s because the tax law limited (or eliminated) tax breaks that other business owners could take advantage of.
But that’s changed. Now you can also take advantage of important benefits that can save you a lot on money.
What are they? We’ll give you all the details when you read my new article titled Tax Tips: COVID-19: Tax Benefits for S Corporation Owners.
Four ways our fact-filled article can help you:
- You’ll learn how you can defer payment of payroll taxes. As an S corporation owner, you can defer the employer-portion of Social Security tax on your salary, just as you can on any of your employees. IMPORTANT: your S corporation’s deferred taxes are due in two installments. We’ll tell you when you need to pay them when you read the full article.
- We’ll explain the important PPP exception. If your S corporation receives a Paycheck Protection Program loan, and you’re granted loan forgiveness, you won’t qualify for the payroll tax-deferral provision. But hang on a second. There’s a big loophole in the law that can save your bacon if you know how to handle things. All will be explained when you read the full article.
- We’ll give you important information about the employee retention credit. Here’s a brief look at what you need to know: your S corporation is eligible for a refundable payroll tax-credit against the employer share of employment taxes equal to 50% of its wages paid to employees after March 12, 2020 and before January 1, 2021. This can all get a bit complicated but we’ll explain everything clearly when you read the full article.
- You’ll learn how to take advantage of tax-free disaster payments. Congress has decided that your S corporation can make tax-deductible, disaster-related payments to employees, including yourself. What’s more, these payments are tax-free to employees as you’ll learn when you read the full article.