PracticeCFO coordinates closely with your payroll provider. Generally practice owners should establish themselves as S-Corporations. As such, the owner is required to pay themselves an adequate W2 compensation. How much compensation is a critical decision for them. If not determined properly, they will either (1) overpay in FICA taxes, (2) subject themselves to an IRS audit.
Additionally, if the practice has a retirement plan, such as a 401K, the owner’s compensation should consider how their W2 compensaiton will affect the plan funding requirements for themself and their staff.
Although PracticeCFO doesn’t process payroll, we work direclty with your payroll provider to ensure payroll of the owner is management properly.
The benefits to you are:
- Lower taxes
- Lower risk of an IRS audit
- Proper funding of a 401K or Defined Benefit Plan
- Integration of your payroll into our tax and financial planning