Compensation and Fringe Benefits Paid by Pass-Through Entities: Reporting and Tax Issues

Health Insurance Premiums, Retirement Contributions, Auto Allowances, and Other Perks

Note: CLE credit is not offered on this program

A live 110-minute CPE webinar with interactive Q&A


Wednesday, October 7, 2020 (in 11 days)

1:00pm-2:50pm EDT, 10:00am-11:50am PDT

or call 1-800-926-7926

This webinar will explain reporting and tax obligations for fringe and other benefits paid to shareholders, partners, and employees of pass-through entities (PTEs). The panel will clarify when and where to report these benefits, which benefits are deductible by the PTE, and how to calculate and tax these perks.

Description

Most employees receive fringe benefits. Determining whether they are taxed, how they are taxed, and how to report these benefits is particularly perplexing for PTEs and their advisers. Benefits provided to partners are sometimes reported as compensation on lines 4a and 4b of Schedule K-1 and other times as non-taxable perks.

Some are deductible by the partnership, and others are reported as distributions to the individual partners. Health insurance premiums, for example, are reported as compensation to the partner and deductible by the partnership. Unlike other fringe benefits, the partner is allowed a deduction for the medical expense on his individual 1040.

At the same time, health insurance payments for 2% S corporation shareholders are reported as income to the individual shareholders on their W-2s (not subject to FICA or FUTA) and are deductible as salary payments by the S corporation.

Equally confusing is reporting retirement plan contributions made by partners and the partnership, including determining self-employment tax on the applicable portion. Advisers and owners of PTEs need to understand how to accurately report retirement, fringe benefits, and other payments to shareholders, partners, and employees so that the entity and owners properly report and remit the corresponding tax due.

Listen as our panel of experts reviews reporting and withholding requirements for auto allowances, retirement contributions, health insurance premiums, and other perplexing benefits paid by PTEs.

READ MORE

Outline

  1. Pass-through entities
  2. Reporting differences: employees, shareholders, partners
  3. Fringe benefits
    1. Reporting responsibilities
    2. Withholding responsibilities
  4. Compensation
    1. Reporting responsibilities
    2. Withholding responsibilities
  5. Other taxable benefits

Benefits

The panel will review these and other critical issues:

  • How to calculate and report auto allowances paid to employees or owners
  • When retirement contributions paid by PTEs are deductible
  • Where to report health insurance premiums paid to 2% shareholders of S corporations
  • Best practices for imputed income included in W-2s

Faculty

Madden-Erinn
Erinn Madden

Managing Director, Washington National Tax, Compensation and Benefits
KPMG

Ms. Madden is a compensation and benefits attorney with extensive experience advising clients on global compensation...  |  Read More

Rhodes, Carly
Carly Rhodes

Senior Manager, Compensation & Benefits, Washington National Tax
KPMG

Ms. Rhodes specializes in the areas of qualified and nonqualified plans, executive compensation, equity arrangements,...  |  Read More

Stecher, Terri
Terri Stecher

Director
KPMG

Ms. Stecher has more than 15 years of experience providing technical support in the areas of executive compensation,...  |  Read More

Live Webinar

Buy Live Webinar
CPE credit processing is available for an additional fee of $39. CPE processing must be ordered prior to the event.
See NASBA details.

Live Webinar & CPE Processing

$236

Buy Live Webinar & Recording
A savings of $150

Live Webinar & Download

$244

Live Webinar & DVD

$244 + $24.45 S&H

Other Formats
— Anytime, Anywhere

Download

48 hours after event

CPE Not Available

$197

DVD

10 business days after event

CPE Not Available

$197 + $24.45 S&H