If you’re a small business owner stressing about taxes, you’re not alone. Seventy-seven percent of small business owners feel the burden of business taxes.
But you can possibly reduce your tax obligations — and potential headaches — with these money-saving opportunities.
Keep it in the family. If your small business is looking for an extra set of hands, have you considered hiring your spouse? If certain requirements are met, you can deduct contributions made to a qualified retirement plan on behalf of your employees, including your spouse. Plus, if you’re currently paying to cover your spouse under the company’s health insurance plan, you may be able deduct all the health insurance premiums the business pays on their behalf.
Save money on healthcare. Speaking of health insurance premiums, one of the easiest ways to reduce your business taxes is by using a Health Savings Account (HSA). An HSA is a tax-advantaged account that allows you to make tax-free contributions and withdrawals to put toward qualified medical expenses like copays, prescriptions and more.
Deduct marketing expenses. Are marketing expenses tax deductible? You bet — as long as they’re directly related to your business. Marketing expenses that are commonly deductible include:
- Content development
- Designing and maintaining a website
- SEO services
- Exhibiting at an industry trade show
- Hiring a marketing consultant
Make charitable contributions. By contributing to a cause that’s close to your heart, you may be able to deduct a percentage of taxable income. Keep in mind, contributions must be made to qualified organizations that meet IRS guidelines.
Revisit employee compensation. Offering your employees a competitive compensation plan can help you attract and retain the best. And it may also have an added perk of tax-saving benefits for your business. Employee salaries and bonuses are generally tax deductible and are exempt from Social Security and Medicare (FICA) taxes.
There are many variables that can impact your company’s tax circumstances, so be sure to consult with your trusted business or tax advisor before implementing any new tax-saving strategies.
The CPAs at Magone & Company can support you in making the most tax-efficient decisions for your business. Give us a call today at (973) 301-2300 to learn more.