We hear a lot in the media about wage earners being told to “take the free money” that is offered by your company in the way of retirement savings benefits…which can effectively give you a raise if you take full advantage of the offerings.
Now I want to take that a step further for the small business owner.
If you didn’t take all the “free money” that Uncle Sam offers you in the way of write-offs, you left a lot of money on the table. Like $74,000 in free money.
- Safety bonuses ($1650)
- Employee bonuses $(1650)
- Children of the owner can be paid up to $3750 tax free!
- $40,000 in retirement savings
- And thousands of other dollars
For those of you who are looking for a cure for insomnia, I’d recommend reading tax law. For the rest of you, you need to give us a call!
Now, I’m not leaving out the wage and salaried employees, you have some great stuff that can be written off, too, but not nearly as much. The recommendation is the same, though – come on in, let’s talk about what opportunities exist for you, and give yourself a raise.
Now, there have been a few changes in the definition of overtime for salaried workers starting last summer and that is still a political football – especially if you make more than $47,000 annually. For many of our readers here locally, that could actually make you pay more in taxes than you currently are – and seriously cut into your return next year. In fact, since that ruling came out, we’ve had several clients come to us to discuss the changes they need to make in their current tax strategy to make sure they don’t get caught short in the coming years.
In most of those cases, we were able to make some minor tweaks to their withholding and they will not only save money next year, they will make more right now. If you find yourself in this category of employment, this is a great time to do some tax strategy and put away and extra 3-4% of your income for retirement, savings, or to pay off consumer debt even faster. I know that some of you guys will simply use it to rethink your weekly budget, and that is certainly fine, too!
Just like a raise at work, though, you have to ask – we can’t do it without your input, so make sure to schedule a time to come in and sit down with us and see how much we can help you to save!