Beware of the Tax Bite on S Corp Conversion — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
Q. We switched from a C corporation to an S corp. Now, my accountant says we owe a passive tax. Can this be right? N.K., Brooklyn, N.Y.
A. Yes. A company switching to S-corp status owes tax on “excess net passive income,” triggered if the corporation’s passive income exceeds 25 percent of gross receipts and it has earnings and profits at year-end. Tip: The tax equals 35 percent of the lesser of the excess passive income or annual taxable income.
High levels of employee engagement are critical in today’s competitive environment. And yet the vast majority of workers are either not engaged or are actively disengaged at work. The critical skills for overcoming that gap: effective internal communication....Click here to find out more.