Tax Accountant Phillip Fry Recommends Business Trusts To Reduce Business Obamacare Tax Liability
Tax accountant Fry advocates the use of separate business trusts to protect independent contractors from company inclusion in the Obamacare tax program.
View as PDF
March 8, 2013 (FPRC) -- Mesa, Arizona. Tax accountant Phillip Fry suggests that businesses utilize business trusts for use by their independent contractors to help exempt the contractors from the business’s payment of high Obamacare taxes that begin Jan 1, 2014.
One important strategy for businesses wishing to avoid the payment of Obamacare taxes is to keep the number of their full-time employees to fewer than fifty, the minimum threshold for a business to be required to pay Obamacare taxes.
Many businesses already utilize the services of independent contractors to enable service providers not to be considered as employees under the rules and regulations of the Internal Revenue Service and of state government’s tax collectors involved in the assessment and collection of state income taxes, unemployment insurance premiums, and worker’s compensation insurance premiums.
The U. S. Supreme Court has established a widely-accepted five-part test, known as the "economic reality" test, that helps establish whether a person is an employee or an independent contractor.
In United States v. Silk, 331 U.S. 704 (1947), a case dealing with whether an employer owed Social Security taxes on certain workers, the Supreme Court found the following factors important:
1. the degree of control exercised by the alleged employer;
2. the extent of the relative investments of the (alleged) employee and employer;
3. the degree to which the "employee's" opportunity for profit and loss is determined by the "employer";
4. the skill and initiative required in performing the job; and
5. the permanency of the relationship.
One of the best ways for an independent contractor to satisfy the economic reality test is to create a low-cost ($99) business trust through which to provide his or her services to more than one client, and with the invoiced services being results or work product-oriented and not hours worked-oriented. Clients are invoiced for services rendered and the clients then issue vendor invoice payment checks directly to the name of the independent contractor’s business trust (such as “Rockville Marketing Services”).
For more information on the effective and successful use of business trusts, please visit the website www.businesstrustcreator.com, or email tax accountant Phillip Fry email@example.com, or phone Mr. Fry at 1-480-217-7173 or 1-480-310-7970.
Send an email to Phillip Fry of Tax Accountant Phillip Fry
Recent Press Releases By The Same User
Mold Expert Phillip Fry Launches Mold Victim Rights Association To Help Individuals Sickened By Mold (Thu 16th May 13)
Environmental Hygienists Release New Set of Steps for Toxic Mold Removal (Tue 7th May 13)
Mold Experts Recommend Frequent Cleaning Inside Air Conditioners and Ducts to Prevent Toxic Mold Infestations (Sun 28th Apr 13)
Mold Experts Recommend Regular Mold Testing of Office and Workplace Air Conditioning in Arizona, California, and Nevada. (Sun 28th Apr 13)
Mold Inspectors Recommend Mold Inspection Prior To Purchase of Homes and Buildings in Asia (Thu 11th Apr 13)
Taylor Moldmen Now Offer Mold Inspection, Testing, and Removal for Properties in Cebu and Visayas, Philippines (Thu 28th Mar 13)