The idea of fringe benefits is pretty common sense when it comes to working for someone else but did you know you can also use them with your own small business to save taxes for yourself even if the only “employees” are you or your spouse?
Many small business owners miss out on the convenience and tax savings of important benefits like health savings accounts, health reimbursement accounts. retirement savings, or even things like education assistance or memberships.
Don’t miss out on these easy tax breaks! Take care of your family’s future using fringe benefits.
Examples of fringe benefits
Want to save on out-of-pocket medical expenses? A health reimbursement arrangement (HRA) or Health Savings Account (HSA) might be what you need. Want to make sure to provide for your retirement? You’ll want to make sure your business offers a simplified employee pension (SEP), SIMPLE 401K, or SIMPLE IRA.
I can help you:
- Bring together the right team (including tax professionals, insurance advisors, and retirement experts) to help you decide what you do and don’t need
- Evaluate whether your business entity is the right choice for your desired benefits (especially important if you operate as an LLC since it can choose one of three tax statuses, each of which have pros and cons for desired benefits
- Implement the appropriate documentation and policies for benefits to comply with IRS rules
Even though these tax breaks are great, they can also be complicated. Use the wrong plan documents, forms, or procedures and the IRS could disallow the plan or the deductions and can even impose penalties. Ready to start saving on taxes by offering fringe benefits through your small business? I can help you do it right!