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Compensation

5 ways to withdraw cash from your corporation while avoiding dividend treatment

Closely Held Corporations, Compensation, Income Tax, Small Business, Tax, Tax Planning /

Do you want to withdraw cash from your closely held corporation at a low tax cost? The easiest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax-efficient, since it’s taxable to you to the extent of your corporation’s “earnings and profits.” But it’s not deductible by the corporation. Different approaches. […]

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Could your business benefit from the tax credit for family and medical leave?

Compensation, Deductions, Employee Benefits, Federal Tax Credit, Qualifying Leave for Family Medical Leave, Small Business, Tax Credits, Tax Cuts and Job Acts (TCJA), Uncategorized /

The Tax Cuts and Jobs Act created a new federal tax credit for employers that provide qualified paid family and medical leave to their employees. It’s subject to numerous rules and restrictions and the credit is only available for two tax years — those beginning between January 1, 2018, and December 31, 2019. However, it

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Time for NQDC plan deferral elections

401 K, 529 Saving Plan, Compensation, Compensation and Benefits, Federal Income Tax Filing, Income Tax, Nonqualified Deferred Compensation (NQDC), Tax, Tax Cuts and Job Acts (TCJA), Tax Planning, Tax Savings /

If you’re an executive or other key employee, your employer may offer you a nonqualified deferred compensation (NQDC) plan. As the name suggests, NQDC plans pay employees in the future for services currently performed. The plans allow deferral of the income tax associated with the compensation. But to receive this attractive tax treatment, NQDC plans

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Tax-free fringe benefits help small businesses and their employees

Compensation, Employee Benefits, Flexable Spending Accounts, Fringe Benefits For Employees, FSA, Small Business, Tax, Tax Cuts and Job Acts (TCJA), Tax Savings /

In today’s tightening job market, to attract and retain the best employees, small businesses need to offer not only competitive pay, but also appealing fringe benefits. Benefits that are tax-free are especially attractive to employees. Let’s take a quick look at some popular options. Insurance Businesses can provide their employees with various types of insurance

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Assessing the S corp

Compensation, Qualified Business Income Deducton (QBI), Shareholder, Tax, Tax Cuts and Job Acts (TCJA), Tax Planning, Tax Savings /

The S corporation business structure offers many advantages, including limited liability for owners and no double taxation (at least at the federal level). But not all businesses are eligible – and, with the new 21% flat income tax rate that now applies to C corporations, S corps may not be quite as attractive as they

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