Description
Learn about proven strategies to reduce selfemployment taxes and comply with the strict guidelines of the IRS.
Selfemployment is a tax that small business owners often do not consider in their tax planning and can significantly increase a tax bill beyond projections. Without planning, this additional tax can have a serious impact on the bottom line. This tax is also an area in which proper planning and business strategy can significantly reduce or even avoid the liability altogether. As the government seeks to increase its tax revenue, compliance in proper reporting of income to recognize selfemployment taxeligible income has become an area of target enforcement for the Internal Revenue Service.
This presentation will highlight what the selfemployment tax is, how it differs from traditional Social Security and Medicare taxes (FICA) withheld from employees, and discuss strategies one can use to manage and minimize the selfemployment tax specifically. This presentation also examines proposed legislation and its impact on the recognition of this tax, as well as recent judicial decisions impacting the enforcement and application of the current rules.
Date: 2023-06-14 Start Time: 1:00 PM ET End Time: 2:40 PM ET
Learning Objectives
* You will be able to describe the selfemployment tax.
* You will be able to review how to avoid earned income recognition and the related SE tax.
* You will be able to discuss the impact of the Build Back Better Act and its potential impact on the SE tax.
* You will be able to explain how the hiring of a spouse or child reduces the selfemployment tax.