To learn more about the options, you can check out this guide: Set up and record S-Corp health insurance. If you need help with other payroll tasks, you can browse for specific topics here and look for responses that fit your concern. Fill me in...
What is the 2% rule for S corp? If you own 2% or more of your company’s shares, you must treat certain fringe benefits as taxable income, including health insurance and life insurance premiums. This prevents owners from avoiding taxes by taking compensation as tax-free benefits instead of ...
Personal assets of shareholders are protected by the structure of an S corp. No shareholder is personally responsible for the liabilities and debts of the business. Creditors have no claim on the personal assets of shareholders in order to settle business debt, whereas personal assets are vulnerable...
S-Corp income tax return deadline An S corporation must file its annual tax return by the 15th day of the third month after the tax year ends. This is usually March 15 unless that day is a weekend or holiday. The business must report all financial activity on Form 1120S. They must a...
Some businesses are not allowed to form an LLC because of government regulations (e.g., companies in the insurance industry). Check your state’s laws to see if your business can be an LLC. S Corp vs. LLC: What’s the difference? There are three main ways that S corporations and LLC...
What is the difference between corporate income tax, taxable income, business assets, and reasonable salary? In this article, we will focus on the choice between LLC, S corp, and C corporation status. Forming either a limited liability company vs. s corporation is not a requirement, but each...
Owner-employees can also participate in company benefit programs, including 401K and profit-sharing plans. However, some employee benefits like medical and life insurance can be taxable if an employee owns more than two percent of the company. ...
Employee benefits also vary between an S corp vs. a C corp. S corporations are subject to restrictions on allowable benefits, such as high deductible health insurance premiums, wellness or preventive care, and health stipends for S corp shareholders. In comparison, C corporations are able to of...
S Corp election form within the first two months and 15 days after the beginning of the tax year if they want the election effective for that tax year. They may file their Form 2553 at any time during the current tax year if they wish the election to take effect the following year. ...
It’s possible to claim the health insurance you pay as a tax write-off. The amounts that you pay on behalf of your employees can be claimed on the employer’sincome taxreturn. You need to attachForm 8941- Credit for Small Employer Health Insurance Premiums. ...