Like many small business owners, you are probably already aware of the financial advantages associated with utilizing one of the government's basic tax incentives. However, did you know that there are also specific tax incentives that will reward you for helping your employees? In episode # 135, Gene Marks and Elizabeth Larkin discuss three tax incentives that will not only earn you additional deductibles, but will provide your employees with competitive benefits as well.
Executive Summary
2:07—Today's Topic: Which Tax Incentives will Enable Me to Offer Employee Benefits?
3:01—Small business owners who invest up to $5,250 a year on employee education will receive a full deduction, while their employees benefit from a tax-free education.
5:52—Another employee benefit that will enable you to earn a deductible is dependent care. You can spend $5,000 or reimburse the employee to receive the deductible and your employee will not be taxed. Employees can also inquire about dependent care credit with your accounting department.
8:19—The IRS will allow you to pay $255 a month on an employee's commute. (If they are a biker, you can offer up to $20 a month.) As in the previously mentioned cases, these benefits will be tax-free for your employee and will earn you an additional deductible.
9:35—You should consult with your accountant or attorney to formalize these plans.
11:00—Gene encourages small business owners to apply to Amazon Storefronts so that they can use the platform to reach more clients.
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Transcript
Elizabeth: Welcome to another episode of the Small Biz Ahead podcast. I'm Elizabeth Larkin from The Hartford. I'm here with Gene Marks from the Marks Group, and Gene is also serving today as our small business expert.
Gene: That's a good way to put it, yeah. You know, and it's funny, we're going to talk about taxes today, right, in this-
Elizabeth: Saving on your taxes.
Gene: Yeah, it's taxes, so I never get introduced as a CPA.
Elizabeth: Oh my gosh, yes!
Gene: I am a certified public accountant.
Elizabeth: I'm here with Gene Marks of the Marks Group.
Gene: As a CPA, right.
Elizabeth: Small business expert.
Gene: So this is sort of bread and butter. We've talked about a whole bunch of topics,, but really up my alley is accounting stuff, and taxes, not as much as the accounting stuff, but a lot, so we're going to talk about some good stuff.
Elizabeth: So I just had a Reese's peanut butter cup before we started this so I don't fall asleep, but for you small business owners listening-
Gene: Wait a second. You were going to fall asleep while we talk about taxes, is that what you're implying?
Elizabeth: You're going to want to pay attention to this as a sm...