No Business is Too Small for an Employee Benefit Plan Presented by: Bill Parrish (oneplusone) 3 Jeanne Williams 105 Concepts

Those Pesky Disclaimers This Information is copyright protected by (oneplusone) 3 and may not be reproduced or otherwise distributed without the written consent of (oneplusone) 3 This presentation is for informational purposes only and should only be implemented by a practitioner after appropriate due diligence has been performed Not all of the concepts and strategies proposed in this presentation may be appropriate for all practices. Careful study must be undertaken by anyone considering the implementation of these concepts and special attention should be given to individual state laws governing the practice of professionals.

How Small is Small? Small Businesses are the Backbone of American Business New Businesses are being Created Faster than Even Before Home Based Businesses are the Fastest Growing Segment Downsizing is a Driver

How Small is Too Small Today, we are going to talk about: Sole Proprietors with no employees Sole Proprietors with a few employees Sole Proprietors with family members as employees Small S Corporations Closely held C Corporations

Sole Proprietors with No Employees Treatment of Retirement Plans Treatment of Health Care Costs Treatment of Health Insurance Costs

Health Reimbursement Arrangement – HRA Ideal for Sch C & F Taxpayers Without an HRA Above the line tax savings With an HRA Costs deducted on Sch C or F Save Employment Taxes Save Income Taxes Full deduction, not reduced by % of AGI

Health Savings Account - HSA High Deductible Health Insurance Plans Enacted 2003 Plan must “Qualify” Taxpayer Deducts contribution into HSA Ideal for businesses with or without employees

S Corporations IRC Code Section 1372 IRS Notice Clarifies treatment Clarifies ownership rules Taxpayers can clearly benefit

S Corporations with High Deductible Plans Shareholders create their own HSA Contributions are deductible Accumulation within account escapes current taxation

C Corporations May provide most flexible opportunities Must weigh tax considerations Cafeteria – Section 125 – Flex plans Premium Only Plans – POP’s Health Savings Accounts – HSA’s Medical Spending Accounts – Flex Accounts Dependent Care Accounts

Pre Paid Legal Expense Plans Provide no tax benefit Create an atmosphere of a caring employer Provide a stable workforce

Education Assistance Plans Benefits may vary by state More complex - usually requiring pre- approval “Qualifying Testing” may apply

How Small is Too Small? No business is too small for the savy tax professional to help Sets your services apart from run of the mill firms Demonstrates your expertise

About the Co-Presenter Jeanne Williams Director of Research 105 Concepts PO Box 350 Doniphan, NE Phone Fax

For Information About ConnectEd: Jodi Goldberg, Director of Member Services National Society of Accountants Ext 1304 About the Presentation Bill Parrish, Founder & CEO (oneplusone) Ext

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