Froehling Anderson

Manufacturers Alliance: Managing Daily Performance

dlepper — Fri, 13 Jan 2012 23:00:27 +0000

Date: February 1, 2012

MPMA 36th Annual Upper Midwest Golden Gloves Banquet & Boxing Exhibition

dlepper — Fri, 13 Jan 2012 15:08:58 +0000

Location: Medina Entertainment Center
Date: January 31, 2012

NAIOP: The 2012 Univeristy Challenge & Reception

dlepper — Fri, 13 Jan 2012 15:04:57 +0000

Date: April 12, 2012

NAIOP: Business Morning at the Capitol

dlepper — Fri, 13 Jan 2012 15:04:17 +0000

Date: March 14, 2012

Strategies for Success Symposium

dlepper — Fri, 13 Jan 2012 15:03:43 +0000

Location: Rush Creek Golf Course
Date: January 17, 2012

NAIOP: Treasure Hunting: Secret Sources of Money

dlepper — Fri, 13 Jan 2012 15:02:47 +0000

Date: February 14, 2012

Online Retailers & Sales Tax

Wade Christensen — Tue, 06 Dec 2011 15:50:06 +0000

There is a continuing debate about what to do with online retailers and collecting sales tax.　 Many of the top “e”-tailers do not collect sales tax in states in which they have no physical presence.　 For consumers, it is becoming more and more popular to shop online to save money and avoid paying any sales tax.

Should online retailers be collecting sales tax? Do online retailers have a built in advantage over local stores? Click here for an article discussing these questions and items to keep in mind related to sales tax if your company buys or sells over the internet.　

Manufacturers Alliance Monthly Educational Program: Managing Innovative Product Development

dlepper — Wed, 16 Nov 2011 19:55:16 +0000

Date: January 12, 2012

Manufacturers Alliance Monthly Educational Program: Developing Decision Makers

dlepper — Wed, 16 Nov 2011 19:54:23 +0000

Date: December 8, 2011

Long-term Care Insurance & Your Business

Wade Christensen — Mon, 07 Nov 2011 19:07:39 +0000

Owner-Employees of S Corporations vs. Owner-Employees of C Corporations

Providing fringe benefits such as long-term care insurance to owner-employees can be an effective way to add value to your company. In general, the Internal Revenue Code allows employees to exclude certain fringe benefits from gross income and deduct the fringe benefit as a business expense. However, there is a difference in the treatment to owner-employees depending upon what type of entity structure your business is operating under.

Below is a comparison of the tax impact to owners of C corporations vs. owners of S corporations when providing long-term care insurance as a fringe benefit:

Rules for C Corporation Owner-Employee

Nondiscrimination rules do not apply to LT care insurance plans that are in separate plans from other health benefits. (The insurance company may require the employer to define the classes of employees eligible. If the employer intends to provide coverage to key employees, it may be beneficial to buy individual policies rather than having a group plan).
Individual contracts purchased for key employees are fully deductible by the business and no income is reported to the employee.
They are not subject to ERISA since individual policies are not group plans.
Language in employment contract stating that LT care insurance is being provided may be a good idea.
No limitations apply in the amount of LTC insurance that can be provided for tax free to an employee.

Rules for S Corporation Owner-Employee

Greater than 2% shareholders must include the premiums paid on their W-2.
Income is not subject to FICA tax and are excluded from boxes 3 and 5 of the W-2.
An above-the-line deduction is allowed on the shareholder’s Form 1040.
The amount that is deductible on Form 1040 is limited based upon the age of the shareholder.
- Under age 40, the limit is $340
- 41-50 it is $640,
- 51-60 it is $1,270
- 61-70 it is $3,390
- over 70 it is $4,240.