1 Tip To Lower Payroll Tax

How old you were when you first noticed the impact of taxes being withheld from your paycheck?  

As a business owner...

...and you not only see YOUR taxes coming out of your profits...

...but also see your EMPLOYEES taxes reduce your profits!!

One way to lower your payroll taxes is obvious...

...pay your team LESS!

HOWEVER...that is NOT the tip!

I am referring to a strategy where you GIVE THEM MORE...

...but "pay" them less.

How does that work?

Quick background on payroll taxes:

Your payroll taxes are based the WAGES/MONEY that you pay your employees...

...NOT the benefits that you provide them.

Providing Benefits can LOWER YOUR PAYROLL TAXES!

Switching out Wages for an equivalent benefit can be a WIN-WIN for your employee and you!

Let’s dive into a hypothetical example:

Wages:

Your hiring for a Junior coach to make a salary of $100,000/year.

Let's say your state, local and federal payroll taxes are 10%…costing you approximately $110,000 to employ them.  

Hypothetically your ideal candidate has a family and they are paying $10,000/year in health insurance premiums out of their own pockets.

You could setup a WIN-WIN with them...

...You could offer them a salary of $90,000 + $10,000 Health Benefit.

Now their total employment is $109,000.

That might not sound amazing...but 2 things to keep in mind!

#1. Depending on where you live, your payroll taxes could be much higher. 

#2. Benefits have a perceived value much higher than the dollar amount that it costs you.

Bonus #3. The tax code is beneficial to us business owners...not as much employees...

...so the benefit that you offer could actually be saving your employee money on their end.

This is why the Actual AND Perceived values can be very high by implementing BENEFITS...

...rather than just 100% "Money".

Need my help?

Schedule FREE Consultation Today!

Best,

Pat

Disclaimer: this article is meant to be educational and not advice for your specific business.  Please talk to a qualified financial planner or tax professional before making changes to your business.