If you’re running your business as an S corporation you know you have to pay yourself what the IRS considers to be “reasonable compensation.”
But what about your health insurance premiums? If your corporation pays those premiums does it have to change your salary to meet “reasonable compensation” standards?
You’ll get straight answers to these important questions when you read my new article titled Q&A: Health Insurance Premiums and Reasonable Compensation.
Three ways our fact-filled article can help you:
- We’ll show you how to come out a winner. If your S corporation pays or reimburses your health insurance premiums and you qualify to deduct the insurance as self-employed health insurance, that income becomes 100-percent tax-free to you. That’s right. You pay neither income nor payroll taxes on that amount. We’ll give you all the details when you read the full after-tax-reform article.
- You’ll learn how to avoid making serious mistakes. If you fail to factor your S corporation’s payment of your health insurance premiums into your reasonable compensation, then you’re making two costly errors. You’re overpaying payroll taxes and reducing your Section 199A deduction. We’ll give you the whole story when you read the full after-tax-reform article.
- We’ll tell you why you need to keep a sharp eye on these issues. Things change in life. And your business changes too. That’s why it’s important to review your salary and “reasonable compensation” issues as time passes. The point is, you always want to make sure you’re meeting the IRS’s expectations and are staying within the law. All will be explained when you read the full article.