Surgent's Reducing a Business Owner Client's Exposure to Social Security and Self-Employment Taxes

Overview

Many business owner clients wish to minimize their Social Security and self-employment tax liabilities. This course provides tax practitioners with the background to understand what kinds of income constitute self-employment income and earned income. It covers strategies that can be used to reduce clients’ exposure to the self-employment tax and Social Security tax.

Highlights

• Section 1402(a)(1) exclusions from the definition of self-employment income
• Application of the SE tax to members of limited liability companies
• Taking a self-employed owner's health insurance deductions against self-employment tax
• How using the S corporation and the MMLLC treated as a partnership can help reduce an individual's exposure to self-employment tax
• How hiring a spouse and/or child helps reduce self-employment tax
• Differentiating between income treated as self- employment income and income that is not self-employment income

Prerequisites

Basic knowledge of individual income tax

Designed For

Tax practitioners who advise clients with regard to their self-employment tax liability

Objectives

• Determine when avoiding earned income/SE income works favorably for the client
• Understand how hiring a spouse and/or child helps reduce self-employment tax
• Differentiate between income treated as self- employment income and income that is not self-employment income

Preparation

None

Notice

This course is provided by a third-party vendor. Please note that login instructions will not be available in the ‘My Upcoming CPE’ section of the NESCPA website. Instead, the login instructions will be sent directly to you via email by Surgent. Upon completing the course, your hours will be recorded in the ‘My CPE Tracker’ section of the NESCPA website.