No Business is Too Small for an Employee Benefit Plan

Presented by:

Bill Parrish(oneplusone)3

Jeanne Williams105 Concepts

Those Pesky Disclaimers

This Information is copyright protected by (oneplusone)3

and may not be reproduced or otherwise distributed without the written consent of (oneplusone)3

This presentation is for informational purposes only and should only be implemented by a practitioner after appropriate due diligence has been performed

Not all of the concepts and strategies proposed in this presentation may be appropriate for all practices. Careful study must be undertaken by anyone considering the implementation of these concepts and special attention should be given to individual state laws governing the practice of professionals.

How Small is Small?

Small Businesses are the Backbone of American Business

New Businesses are being Created Faster than Even Before

Home Based Businesses are the Fastest Growing Segment

Downsizing is a Driver

How Small is Too Small

Today, we are going to talk about: Sole Proprietors with no employees Sole Proprietors with a few employees Sole Proprietors with family members

as employees Small S Corporations Closely held C Corporations

Sole Proprietors with No Employees

Treatment of Retirement Plans

Treatment of Health Care Costs

Treatment of Health Insurance Costs

Health Reimbursement Arrangement – HRA

Ideal for Sch C & F Taxpayers

Without an HRA Above the line tax savings

With an HRA Costs deducted on Sch C or F

Save Employment Taxes Save Income Taxes Full deduction, not reduced by % of AGI

Health Savings Account - HSA

High Deductible Health Insurance Plans

Enacted 2003 Plan must “Qualify” Taxpayer Deducts contribution into

HSA Ideal for businesses with or without

employees

S Corporations

IRC Code Section 1372 IRS Notice 2008-1

Clarifies treatment Clarifies ownership rules Taxpayers can clearly benefit

S Corporations with High Deductible Plans

Shareholders create their own HSA

Contributions are deductible

Accumulation within account escapes current taxation

C Corporations

May provide most flexible opportunities

Must weigh tax considerations Cafeteria – Section 125 – Flex plans Premium Only Plans – POP’s Health Savings Accounts – HSA’s Medical Spending Accounts – Flex

Accounts Dependent Care Accounts

Pre Paid Legal Expense Plans

Provide no tax benefit

Create an atmosphere of a caring employer

Provide a stable workforce

Education Assistance Plans

Benefits may vary by state

More complex - usually requiring pre-approval

“Qualifying Testing” may apply

How Small is Too Small?

No business is too small for the savy tax professional to help

Sets your services apart from run of the mill firms

Demonstrates your expertise

About the Co-Presenter

Jeanne WilliamsDirector of Research

105 ConceptsPO Box 350

Doniphan, NE 68832Phone 866-752-6105Fax 866-845-0452

jeanne@105concepts.comwww.105concepts.com

For Information

About ConnectEd: Jodi Goldberg, Director of Member Services National Society of Accountants 800-966-6679 Ext 1304 jgoldberg@nsacct.org

About the Presentation Bill Parrish, Founder & CEO (oneplusone)3

800-867-0065 Ext 1013 billparrish@oneplusone3.com www.oneplusone3.com

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