This course is specifically for Enrolled Agents that need to report to the IRS.

This mini-course examines the various ideas, methods, and techniques capable of optimizing the overall compensation package for key employees and principals in small to medium sized businesses. Qualified and non-qualified deferred compensation, benefit targeting, insurance programs, statutory fringe benefits, interest free loans, and investment planning are investigated. Consideration is given to indirect compensation in the form of business entertainment, expense accounts, auto use, travel, and transportation. The new field of professional services is probed to provide tax, financial and estate planning to the key executive.

Learning Assignment & Objectives

As a result of studying the assigned materials, you should be able to meet the objectives listed below.

ASSIGNMENT  SUBJECT

At the start of the materials, participants should identify the following topics for study:

1. Deferral of income
2. Avoiding taxable income
3. Unreasonable compensation
4. Nonqualified deferred compensation
5. Basic types of corporate retirement plans
6. Individual plans
7. Fringe benefits
8. Employer provided automobile
9. Business entertainment
10. Business travel & transportation

Learning Objectives

After reading the materials, participants will be able to:

1. Identify four types of income, from a financial and tax perspective, to be budgeted into cash so that income-producing assets can be acquired and managed for an effective investment plan.
2. Structure compensation to maximize the net dollar return using strategies that involve all aspects of how the client relates to the company for which they may be an owner, employee, or both.
3. Distinguish qualified deferred compensation plans from nonqualified deferred compensation plans, and differentiate defined contribution plans from defined benefit plans noting the characteristics of each so that business owners may choose the most suitable plan to accomplish their financial and worker incentive objectives.
4. Explore and examine the scope and variety of excluded fringe benefits including tax treatment, operational details, and level of incentive based compensation.
5. Apply the directly related test and the associated test to insure that entertainment expenses can be deducted, treat reimbursements paid under accountable and unaccountable plans accordingly, and identify deductible travel expenses undertaken for business.
6. Explain four types of insurance that a company can provide its employees, describe the various types of equity participation available from which companies may choose, and define a buy sell agreement and the two basic types of a buy sell agreement.

Revision Date: 2/23/2024

Additional Contents : Complete, no additional material needed
Advance Preparation : None
Intended Participants : Any CPA looking to maintain or enhance their professional competence
Course Declaration : Participants must complete the final examination within one year of purchase. A minimum passing grade of 70% or better is required to receive CPE
Click here to view cancelation and record retention policies