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 money in your pocket? You’ll find out when you read my new article titled Tax Tips: How to Escape Payroll Taxes on S Corporation Health Insurance.
Three ways our fact-filled article can help you:
- We’ll explain the tricky IRS rules. The truth is, IRS advice on the payroll-tax issue is misleading and internally inconsistent. Luckily for you, we know the regulations inside out and will show you how to avoid taxes legally when you read the full article.
- You’ll learn two proven ways to sidestep payroll taxes. You’re definitely free from paying taxes on your health insurance W-2 income if you fall into one of two categories. We’ll tell you what they are when you read the full article.
- We’ll tell about the useful “class exception.” The law says that you don’t have to pay payroll taxes if you offer a health plan for a “class” of employees. You’ll learn how to use the law to your advantage when you read the full article.