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 on-demand webcast can be taken at any time of your choosing and is valid for one year from the date of purchase. No live instructor is present, and an exam is required to earn credit. You must score 70% or higher to earn the certificate.

How do I access my Self-Study Package?

Visit https://www.surgentcpe.com/login and enter your username (your LCPA email address) and password. If you do not remember your password, press the "Forgot?" button to receive a password reset email. Once logged in, the page will refresh to display your account menu on the left side.