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Save Payroll Taxes by using a "common
paymaster"
If your closely held businesses are operated using two or more
corporations, the different entities may share some of the same
employees. By using a common paymaster for these concurrent employees,
you will save some social security tax and possibly state and local
taxes and worker's compensation insurance premiums.
"Concurrent" employment is defined by the IRS as the "contemporaneous
existence of an employment relationship between an individual worker
and two or more corporations."
Note: LLC,Sole Proprietors, and Partnerships may not employ the
concurrent employment paymaster.
Rather than each corporation paying Social Security and
Medicare tax for shared employees, common paymasters remit
the tax just once as if it were a single employer. The savings
apply to employees earning more than the Social Security wage
base, which for 2008 is $102,000.
This is also helpful for many state and local unemployment and
disability taxes which can be paid just once rather than for each
corporation. Further, there can be significant worker's compensation
and benefit insurance premium savings.
Call Ronald J. Cappuccio, J.D., LL.M.(Tax) at (856) 665-2121 to discuss
this further.
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Ronald J. Cappuccio, J.D.,
LL.M.(Tax)
Counsellor
at Law
1800 Chapel Avenue West, Suite 128
Cherry Hill, NJ 08002 USA
Phone (856) 665-2121
Fax (856) 665-9005
Email: Ron@TaxEsq.com
© Copyright
1996-2008 Ronald
J. Cappuccio, J.D., LL.M.(Tax) All Rights Reserved
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