Excess Allocations vs Overpayments under SECURE 2.0: A Guide for Plan Sponsors

Albertans who contact us often ask ‘Can my employer deduct the cost of my uniform from my paycheque?’ The answer is no; it’s a prohibited deduction. Employers can’t make this deduction – even if you agreed to it.   Learn more: https://lnkd.in/ggz4nDEr #AB

An S-Corp isn't a magic wand. The tax savings come from the reasonable salary requirement. For many new or low-profit businesses, the administrative costs and complexity outweigh the benefits. LLCs are often simpler and just as effective.

While it would seem that employees might be in trouble as per the new regulations, this might not be the case. According to the new rules, 75% of both employee and employer contributions towards PF can be withdrawn, resulting in a larger withdrawal amount. Katya Naidu explains the changes the government has brought to your PF and its impact on your savings. https://lnkd.in/eex22WFf

1️⃣ Employees (W-2) – Income is taxed instantly – Little flexibility – Limited deductions 2️⃣ Asset holders – Appreciation is tax-free – Taxes occur only when selling – Borrowing provides tax-free liquidity 🔹 Example If your real estate doubles in value: Sell → taxable event Refinance → cash + no tax 🔹 My solution I shifted my financial decisions from “What salary do I want?” to “What assets do I want to own?” This allowed me to: ✔ Build equity ✔ Access liquidity ✔ Delay taxable events ✔ Improve long-term compounding You don’t need to be wealthy to think like the wealthy. You just need to understand how assets behave.

Sweat Equity in an S-Corp: The IRS Doesn’t Accept ‘Bro, We’ll Figure It Out Later’ Contractors love sweat equity. S-Corps… do not. If you issue stock—or a discount on stock—in exchange for labor, here’s what actually happens: ✔️ The recipient has ordinary taxable wage income ✔️ YOU owe payroll taxes ✔️ The corporation gets a compensation deduction ✔️ You cannot just “call it a contribution” And if you don’t run it through payroll? IRS calls it unreported wages. And yes, they audit this. Often. Got someone “earning” their way into ownership? Do it cleanly: value the stock, handle the compensation, file the 83(b) election if needed, and don’t wing it. Sweat equity works. But only if you respect the rules. #ProfitFirstForCommercialConstruction #SCorpRules #ConstructionTaxPlanning #PayrollCompliance

Executive pay isn't as straightforward as it looks. Let's clear up a few common misconceptions. #GatewayFinancialPartners #BenchOfLife #ExecutiveCompensation #FinancialPlanning #EquityCompensation #TaxPlanning

💡 Most salaried people work hard for money… but forget to make money work for them. Your monthly income can be your biggest wealth-building tool — if invested smartly. Here’s my latest deck on Smart Investment Options for Salaried Employees, breaking down how to grow wealth with safety, returns & tax efficiency. 💰 Let your salary build your freedom, not just pay your bills. #SmartInvesting #PersonalFinance #WealthCreation #FinancialFreedom #SalariedProfessionals #InvestmentPlanning #MoneyManagement

FYI to all the entrepreneurs … ⚙ Understand what “payroll” means for a corporation 🔶 When your corporation pays any salary (including yours as an owner-employee), it must: ✅ Deduct income tax, employment insurance (EI), and Québec Pension Plan (QPP) from each pay. ✅ Remit those deductions (plus the employer’s share) to Revenu Québec (which handles both levels of government for Québec). ✅ Issue T4 and RL-1 slips each February for the previous year.   When is your fiscal year end ?

👀 Looking for industry compensation trends you can leverage to differentiate your credit union and improve attraction and retention? Our 2025 Executive Compensation and Benefits Survey for Credit Unions revealed the latest industry insights and valuable data to help you benchmark your executive compensation and benefits offerings: https://lnkd.in/g8KBx5H8 #CreditUnions #ExecutiveBenefits #RetirementPlanning