Three Benefits Employers Should Offer as Part of Your Tax Strategy

Many businesses offer employees all kinds of benefits that fit into a smart tax strategy. If you are looking to save money on the amount of money that you pay in taxes, there are a few things benefits that you should convince your employer to adopt as part of a tax strategy.
First, adopt a pre-tax childcare credit. That $5,000 that you pay toward childcare can easily convert to over $7,500 when paid after taxes. By using a pre-tax childcare credit provided by your employer, you won’t have to pay taxes on money that is already an earmarked expense. It’s a tax strategy that will help you out before that return even comes in the mail.
Another important tax strategy offered by an employer is your health benefits. Have you ever thought of your health benefits as a tax strategy? It’s true. All of the money that you put into health insurance comes out of your paycheck before taxes. If you have chosen to forego health insurance, you should know that it is actually cheaper to pay pre-tax health insurance than attempt to pay all of your doctor bills out-of-pocket.
Finally, working with your employer to establish a Roth 401K is also a great tax strategy. In a regular 401K your savings are taken out of your check before taxes. With a Roth 401K the money is taxed at a lower rate as you put it into a savings account. It may seem like there is an advantage to putting off taxes until later, but you should know that your 401K will be charged taxes at the higher rate than your Roth 401K. Your main tax strategy should be to pay as few taxes as possible, and with a Roth 401K you will be paying significantly lower taxes in the end.

Karla Dennis

As seen in Forbes Magazine, Karla Dennis is an expert tax and business strategist. As an enrolled agent, Karla is licensed to represent taxpayers in all 50 states. She holds a Masters in Taxation and Business Development and is the author of two books, Tax Storm and Against the Odds.

Karla, CEO of consultancy firm Karla Dennis And Associates, Inc.™, has saved her clients thousands of dollars and has been featured in various media outlets such as Forbes, MSNBC, KTLA, Yahoo! Finance, and SmartMoney, marking her as the ultimate tax expert.

As of 2014, Karla became the new host on the “Mind Your Business” radio show, KTLK AM 1150, sharing her financial and business knowledge with the greater Orange County and Los Angeles areas. As a supporter of women’s rights and issues, Karla is part of the Women Network, an organization built to educate and mentor women. In addition, Karla is the radio host for Women Network Radio, a show that aims to uplift and empower women of all walks of life.