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Easy Payroll Tax-Saving Tips You Can Implement Now To Save Money |
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Written by Ray Attisano, Paychex, Small Business Consultant
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Like many businesses owners across America, it’s possible that your employees contribute to the cost of their health insurance. Are you aware if this contribution is a pre-tax or post-tax deduction? Perhaps you’re not sure. The answer can make a difference, to you and your employees. Here’s how to find out. Check your most recent payroll report or check stub. Find the gross pay or total earnings on the report or stub and multiply that number by 6.2 %. Now, look at the tax section of the report or stub. If the number you calculate matches your Social Security taxes, then it is a post-tax deduction, which means you and your employees could be spending money needlessly. If you identify with the above scenario, you’re not alone. I have seen a great number of local businesses who are not taking advantage of this tax-saving opportunity, known as a Section 125 plan. It allows employees to deduct their health insurance contributions pre-tax. Most business owners agree that it makes sense to implement a Section 125 plan to potentially reduce their business’ tax liability, and to save their employees’ money. Check with the individual or service in charge of your payroll. Ray Attisano is a small business consultant with Paychex, a leading national provider of payroll, human resource, and benefit outsourcing solutions for small- to medium-size businesses, who works with small business owners to ensure they are complying with federal, state, and local payroll tax laws, as well as recommending programs that will help them attract and retain employees. He can be contacted at 610-248-8724.
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Last Updated ( Thursday, 27 November 2008 )
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