Your Resource for Tax, Accounting, and Business Advice

For businesses seeking a flexible and cost-effective benefit option, a health care Flexible Spending Account (FSA) allows both employer and employee contributions without requiring a high-deductible health plan. FSAs do have a “use it or lose it” rule, but employers can add flexibility with options like a grace period or a $500 carryover. Let us help you explore if an FSA is the right fit for your business.

The IRS limits business gift deductions to $25 per person annually, but exceptions allow for greater deductions in certain cases, such as gifts to business entities, incidental costs, or employee gifts. For full deductions, track and document qualifying expenses carefully, including details like gift descriptions, costs, dates, and business purposes.

With kids back in school, now is a great time to consider college funding options like a Section 529 plan, which offers tax-deferred growth and income-tax-free withdrawals for qualified expenses. Contributions to 529 plans may also be state-deductible, and high contribution limits, flexible beneficiary options, and estate planning benefits make them an attractive choice for long-term education savings. For more details or to explore other tax-smart strategies, please reach out—we’re here to help you get started.

Self-employment taxes can be reduced by structuring your business as an S corporation, as income passed through isn’t treated as self-employment income. While the IRS requires reasonable compensation (subject to employment tax), this approach can still yield substantial tax savings. Contact me to see if an S corporation structure could benefit your business.