Small Business Tax Savings Podcast

Are you a small business owner curious about the financial benefits of establishing a retirement plan for your company?

In this episode, Mike Jeshowshek and guest Matt Ruttenberg discuss the substantial tax credits and key due dates associated with setting up retirement plans for small businesses, introduced by Secure 2.0. They delve into specific credits available, such as the startup credit and the auto-enrollment credit, and outline who qualifies for these benefits. Matt provides a detailed explanation of how businesses can maximize these credits, the importance of not missing due dates, and the strategic advantage of starting retirement plans early. They also emphasize the significant tax savings and benefits for small business owners and their employees.

[00:00 - 05:51] Introduction and Overview of the Series

[05:52 - 12:04] Discussing Tax Credits for Retirement Plans

• Matt explains the startup and auto-enrollment credits under Secure 2.0.
• He gives examples of how businesses can utilize these credits.

[12:05 - 18:44] Qualification Criteria and Case Studies

• Matt provided a detailed discussion on who qualifies for the tax credits and a case study illustrating potential savings.

[18:45 - 22:24] Important Due Dates for Implementing Plans

• Matt outlines critical due dates for various retirement plans.
• What is the importance of early planning and meeting deadlines to maximize benefits?

Direct Quote:

"Don't wait until September 15th... It takes roughly 45 to 60 days to implement these plans... So let's start having these conversations and just start looking into it." - Matt Ruttenberg

Connect with Matt Ruttenberg!

Have you ever wondered if you could hire your older child to watch your younger one and claim it as a business expense? Or are you maximizing the benefits of a Health Savings Account to its fullest potential?

In this Q&A episode of the podcast, host Mike Jesowshek answers a series of listener-submitted questions covering a wide range of topics pertinent to small business owners, such as tax deductions, business expenses, payroll management, and tax strategies. Mike provides detailed insights on various scenarios, such as employing children, maximizing HSA contributions, and the proper way to handle business travel deductions. He also discusses the benefits of using payroll software for S Corporations and outlines strategies for setting reasonable salaries within an S Corporation framework. Additionally, the episode includes practical advice on managing business deductions for vehicle expenses and hiring offshore freelancers.

[00:00 - 00:59] Introduction and Webinar Announcement

[00:53 - 04:11] Hiring Family Members and Maximizing HSA Contributions

• Mike discusses the non-deductibility of hiring children for childcare within most small business contexts.
• Health Savings Accounts (HSAs) are tax-advantaged tools, like "retirement plans on steroids."

[04:11 - 09:42] Business Purchases, Tax Implications, and Renting Personal Equipment to Your Business

• Mike breaks down the financial aspects of purchasing a business, focusing on asset depreciation and the treatment of seller financing.
• Correctly account for personal equipment used for business to ensure tax efficiency.

[09:42 - 15:31] Using Payroll Software for S Corporations and other Tax Topics

• Using payroll software to streamline payroll processes can avoid common mistakes.
• Providing comprehensive answers to specific questions helps clarify complex tax situations.

[15:31 - 23:09] Benefits of Payroll Software for S Corps and Correct Payroll Handling

• What are the repercussions of not managing payroll properly in a small business setting?
• Effective payroll management prevents penalties and ensures financial stability.

[23:09 - 25:44] Travel Deductions for Business Trips

• Mike provides guidance on how to document and justify travel expenses as ordinary and necessary for business purposes.
• Detailed documentation and understanding of IRS guidelines can make travel expenses deductible.

[25:44 - 26:49] Closing Remarks and Additional Resources

• Mike concludes with additional resources, a call for questions for future episodes, and a reminder of the upcoming webinar.

Direct Quote:

"Think of an HSA almost as a retirement plan on steroids." - Mike Jesowshek, CPA

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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

Have you ever wondered how to structure your multiple business ventures efficiently while minimizing your tax burden? 

Mike Jesowshek delves into the complexities of business structuring, particularly for individuals owning multiple businesses or in partnership. He emphasizes the utility of S Corporations in reducing self-employment taxes and the importance of establishing a parent S Corporation to streamline business operations, financial management, and tax filing. Mike advocates for separate bookkeeping for each entity, despite their consolidation under the parent S Corp, to maintain clarity in financial and legal aspects.

[00:00 - 04:20] Introduction to Business Structuring and Exploring S Corporation Complexities

• Mike Jesowshek discusses the importance of structuring for business owners with multiple ventures or partnerships. 
• He introduces the concept of S Corporations and their benefits.
• Mike elaborates on the complexities and requirements of maintaining S Corporations, like payroll and tax filings.

[04:20 - 07:03] Structuring for Operational Efficiency

• The conversation shifts to operational structuring, emphasizing separate bookkeeping for legal and financial clarity.
• Mike stresses the importance of having a singular parent S Corporation owning other businesses.

[07:03 - 11:32] Tax Considerations and Partnership Structures

• What are the tax implications and structuring options for partnerships?
• Mike discusses different scenarios where S Corporations can benefit or complicate partnership arrangements.

[11:32 - 20:09] Practical Tips and Conclusion

• Mike shares his concluding thoughts on business structuring with a focus on legal consultation and tax efficiency.
• He wraps up by encouraging listeners to plan their business structure mindfully and consult professionals.

Direct Quotes:

"When we talk about S Corporations, obviously the goal is to minimize self-employment taxes, but S Corps comes with some complexities as well." - Mike Jesowshek, CPA

"We want to have one company that we're actively participating in running through with all of our income before touching us. And we want that company to be in most cases, an S corporation." - Mike Jesowshek, CPA

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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

Are you perplexed by estimated taxes and worried about potential penalties? Discover how to navigate the U.S. tax system's pay-as-you-go approach and strategically plan your payments to stay on top of your tax obligations!

In this episode, Mike Jesowshek discusses the importance of understanding and paying estimated taxes in the U.S., emphasizing the "pay as you go" system. He explains the concept of estimated taxes, key due dates for each quarter, and the significance of making timely payments to avoid penalties and interest. Mike introduces the "safe harbor" rule, which helps taxpayers avoid penalties if they pay a certain percentage of their previous year's tax or their current year's expected tax liability.

[00:00 - 01:21] Introduction to Estimated Taxes

• Mike Jesowshek introduces the topic of estimated taxes, explaining the pay-as-you-go system and upcoming deadlines.

[01:21 - 02:45] The Mechanics of Withholding

• Mike discusses how withholding works for W-2 employees and the responsibilities of business owners for making tax payments.

[02:45 - 04:32] Year-End Reconciliation and Tax Refunds

• What is year-end tax reconciliation and what are the misconceptions about tax refunds?

[04:32 - 06:28] Estimated Tax Due Dates and Payment

• Mike clarifies the quarterly tax payment due dates and the reasoning behind them.

[06:28 - 10:50] Safe Harbor Rule and Calculating Estimated Taxes

• Mike talks about the safe harbor rule, how to calculate estimated taxes and the differences based on adjusted gross income.

[10:50 - 17:06] Actual Method and Recap

• What is the actual method for calculating estimated taxes and the importance of planning for fluctuating business income?

Direct Quotes:

"A refund doesn't mean you saved money on taxes; it's just saying you paid too much in taxes throughout the year." - Mike Jesowshek, CPA

"Estimated taxes are the way that business owners can make payments against that future tax bill as they're earning money." - Mike Jesowshek, CPA

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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast