Tax Season & Savings | Workforce Vlog #15

Is your business organized as a Limited Liability Company?  If so, you could be saving on your taxes. 

 Check out the video below to learn more and make sure to reach out to us at info@workforcepayhub.com!

 

Transcript

Eric Jones:                           Hi, everybody, and welcome to this month's Insight Beyond Payroll. My name is Eric Jones. This is my business partner, Chilah Weller.

Chilah Weller:                   Hey, everyone.

Eric Jones:                           We are two of the owners of Workforce PayHub. Are you in the midst of tax season? We are.

Chilah Weller:                   We are. So, if you happen to be a single-member LLC and you file as an S Corp, that means that you need to at minimum run a quarterly payroll, and we would love to be your option for that. But let's talk a little bit about some of the tax savings as it pertains to an 1120-S.

Eric Jones:                           An 1120-S is simply the business tax return when you file as a Subchapter S. Now it's very common if you have a Limited Liability Company or LLC that you're being taxed for self-employment on your personal return. This is approximately 15% of all of your business income. Now the way around that, the government allows you to file as a Subchapter S and take a reasonable wage based on the IRS criteria and the business needs for your industry. The difference between what you take is that reasonable wage and your profit from the business. You don't have to pay self-employment tax on that difference.

Chilah Weller:                    That's a really big deal.

Eric Jones:                           It is.

Chilah Weller:                    If this is something that you're interested in discussing further, we do have knowledge in that, or if you would like to take this to your tax preparer or CPA, we would still love to be able to have the opportunity to run that payroll with you and work with your tax preparer.

Eric Jones:                           For full transparency in the pricing on that for us, for payroll, it's very straightforward. It's $555 a year, and that includes white glove, ala carte, registering you for taxes, and filing everything for you. That's a quarterly payroll.

Chilah Weller:                    Sounds fantastic, Eric.

Eric Jones:                           If this is something that interests you, please don't hesitate to give us a call at 517-759-4026, or you can email us at info@workforcepayhub.com.

Chilah Weller:                    Thanks everyone.

Eric Jones:                           Thanks. My name's Eric Jones and this is my business partner, Chilah Weller.

Chilah Weller:                    Hey, everyone.

Eric Jones:                           We're two of the owners of Workforce-

Chilah Weller:                    Go ahead.

Eric Jones:                           Happy tax season.

Chilah Weller:                    Whoop.

Eric Jones:                           Are you in the middle of filing your taxes, both personally, possibly, professionally?

Chilah Weller:                    We are. [inaudible 00:02:24].

Eric Jones:                           I don't know what to say. So let's [inaudible 00:02:27].

Chilah Weller:                    We're keeping it safe.

Eric Jones:                           We'll just start. Just go.

Chilah Weller:                    Completely over.

Eric Jones:                           No.

Chilah Weller:                    Please?

Eric Jones:                           No.

Chilah Weller:                    Just go.

Eric Jones:                           No.

Chilah Weller:                    Just go.

Eric Jones:                           No.

Chilah Weller:                    All right. Hold on, I've got to [inaudible 00:02:39].

Eric Jones
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