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Tax Strategies for Family Businesses: Paying Children, SE Insurance, Roths for Children, Social Security

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Thursday, September 22, 2022

Recorded event now available

or call 1-800-926-7926

This webinar will review unique planning strategies for family businesses. Our adept federal income tax panelist will provide insights into maximizing Social Security benefits, lowering payroll taxes, IRA contributions, transferring ownership interests, and making retirement contributions for family businesses.

Description

With labor in short supply, now could be an ideal time to employ family members in the company business. The longstanding benefits of using family include shifting income from higher tax brackets to lower brackets and generating earned income for retirement contributions. Wages paid to children under age 18 by sole proprietors and partnerships in which each partner is a child's parent escape Social Security, Medicare, and unemployment tax.

Deciding a reasonable salary is difficult but significantly affects the overall earnings of a business. Married business owners should incorporate Social Security planning when setting salaries. A spouse might be added to the payroll to ensure Social Security eligibility, or salaries might be increased to maximize Social Security benefits. Tax professionals working with closely held businesses need to know the tax-saving opportunities for family businesses.

Listen as our closely-held business expert explains key considerations of family businesses.

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Outline

  1. Tax strategies for family businesses: an introduction
  2. Paying family members
    1. Tax savings
    2. Younger kids, older kids, and other family members
  3. Retirement planning
    1. Owners
    2. Children
  4. Social Security
  5. Self-employment health insurance deduction
  6. Owner's salary
  7. Transferring ownership interests
  8. Other strategies

Benefits

The panelist will cover these and other key issues:

  • Which businesses are not required to pay Social Security taxes for children?
  • When are insurance premiums deductible as SE insurance?
  • When should a taxpayer consider hiring a spouse?
  • When can a taxpayer make a ROTH contribution for a child?

Faculty

Pon, Lawrence
Lawrence K.Y. Pon, CPA/PFS, CFP, EA, USTCP, AEP
Tax Attorney
Pon & Associates

Mr. Pon has been in practice since 1986 providing comprehensive tax and financial planning, tax preparation and...  |  Read More

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