If you’re a business owner, you may be wondering how you can save on payroll taxes.
Tax attorney Lucas Frei tells you how in this quick-tip video.
Questions About How to Save on Payroll Taxes?
Set up a free initial meeting with a member of our tax team at 303-688-0944, or you can schedule the consultation on your own right here.
Hello everyone, Lucas Frei here, Lead Tax Attorney Robinson & Henry, P.C. I wanted to give a quick tip on an easy way in which we can possibly save you some money and that is through what’s called the S-selection.
Consider an S Corporation to Save on Payroll Taxes
If you have an LLC or otherwise a operative business, we can get you into an S corporation, which has a possibility of saving you money and via the payroll as corporation loophole.
How It Works
What this means is that you can name your own price on payroll tax as long as you pay yourself a reasonable compensation.
This is going to be different for every person. Sometimes it doesn’t necessarily fit into certain industries, but it is a good time to go ahead and look into that if there’s even the possibility of saving you any kind of money.
Here’s an Example
For example, if you had $100,000 of taxable income and we could say that your reasonable income was $50,000, there’s a potential we could save you $7,500 each and every year on your payroll tax burden.
So if you have questions about this, please feel free to give us a call. If you think this is good information, please feel free to go ahead and share this video. Thank you so much for your time.