C corporations offer better tax treatment for fringe benefits than S corporations. But don't avoid an S corporation election simply because of fringe benefits.
Employee Benefits Program
A strong employee benefits program – including low-cost employee incentives, employee recognition programs, and employee appreciation programs – can help you improve morale and retention.
We provide employee appreciation day ideas, help you with employee retention strategies and employee benefits management
If parking space is at a premium near your building, you may pay for employees to park their cars in a nearby garage or lot.
If you set up a qualified fringe benefit plan, your company can deduct those parking costs, and the benefit is tax-free to the employees. Unfortunately, your company may pay a pretty penny for its local parking privileges.
Last year, the federal Health Insurance Portability and Accountability Act (HIPAA) required companies that sponsor large health care plans (more than $5 million in premiums or claims) to start complying with new privacy rules.
This year, it's your turn. Starting April 14, smaller businesses that fall below the $5 million threshold must comply.
The IRS turns a skeptical eye toward what it deems "unreasonable compensation" paid to C corp owner-executives. The taxman can decide your salary is too large and label part of it as a nondeductible dividend.
If your small business offers generous benefits, promote that point hard in your want-ads.
To the cheers of small business owners, Congress this month created Health Savings Accounts (HSAs), as described on page 1. That adds a new acronym to the already confusing tangle of tax-advantaged health care spending, which includes FSAs, MSAs, HRAs and more.
If your company offers a retirement plan, the federal government says you must retain a "fiduciary responsibility" over those employee accounts.
Make sure you keep your insurance payments up to date, and never "oversell" the quality or quantity of your employee benefits.