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Beyond the Paycheck:
Tax-Smart Employee Benefits for Small Businesses
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Course Description
Small businesses have more options for providing valuable employee benefits than many owners realize, but the tax treatment can vary significantly depending on how those benefits are structured.
This practical course explores common employee benefits through a tax professional's lens. Participants will examine health insurance options, taxable health stipends, health reimbursement arrangements, supplemental health benefits, accountable plan reimbursements, educational assistance, and other tax-favored fringe benefits commonly available to small employers.
The course will focus on determining when benefits are deductible by the employer, taxable or tax-free to the employee, subject to payroll taxes, or reportable on Form W-2. Special attention will be given to health benefit options for small employers, the interaction between employer health benefits and the Premium Tax Credit, and the special rules applicable to more-than-2% S corporation shareholders and related family members.
Through practical examples and comparisons, participants will learn to recognize common compliance issues, identify planning opportunities, and help small-business clients structure employee benefits in a tax-efficient manner.
Learning Objectives
Upon completion of this course, participants will be able to:
- Determine the federal income and employment tax treatment of common employee fringe benefits.
- Distinguish between taxable compensation, employee reimbursements, and tax-excludable employee benefits.
- Evaluate common health benefit options for small employers, including group health insurance, taxable health stipends, HRAs, HSAs, dental, vision, and telehealth benefits.
- Explain how certain employer-provided health benefits interact with an employee's Premium Tax Credit.
- Apply the special fringe-benefit rules applicable to more-than-2% S corporation shareholders and related family members.
- Identify payroll, Form W-2, documentation, plan, and other tax compliance requirements associated with common employee benefits.
Julie Babcock-Hyde, CPA, CMA, CFM is the founder of Spark Accounting Solutions, an accounting and advisory firm that helps home service businesses become more profitable and financially stable. She is a Certified Public Accountant, Certified Management Accountant, Certified in Financial Management, and a Certified Profit First Professional, with over 20 years of experience in both public accounting and private industry.
Julie has taught accounting at the college level and has delivered continuing education (CPE) courses for accounting professionals on topics including tax and accounting. She has presented for professional groups such as the Professional Association of Small Business Accountants (PASBA). In addition to training her peers, Julie frequently speaks to business owners in the home service industry — including plumbers, landscapers, and other trades — on practical topics like cash flow, pricing, profitability, and small business strategy. Her industry presentations have included events such as Jobber Summit, Meridian Business Day, and Smart Women Smart Money. Julie is known for her candid, approachable style and her ability to make complex topics actionable for any audience.
