Setting up your law firm’s compensation and benefits packages
Thomas Jordan, P.A. helps law firms minimize their tax liability
The compensation and benefits structure in place at your law firm plays an integral role in the firm’s growth and financial stability. Determining wages, compensation and benefits are complicated processes. For example, benefits such as retirement plans and health insurance fall under government scrutiny, and it is quite easy to make mistakes in choosing or administering a plan. Problems occur in selecting plans to address ownership concerns, while compensating staff for stable firm growth.
- Compensation laws and regulations continually evolve, and your respective plans must be updated to comply with standards of the Internal Revenue Service and the Employee Plans Compliance Resolution System. Non-compliance can cause your firm to be audited and incur penalties from the IRS. You can avoid many of the pitfalls and common mistakes made in paying your employees, associates and partners by administering compensation and benefits with a knowledgeable advisor to guide you.
Keep in mind – your type of business formation (professional association, partnership, corporation, etc.) will affect how your plans are structured and taxes filed. The set-up of compensation and benefits for partners is very different than for employees. In addition, certain pension, retirement and profit-sharing plans carry certain tax benefits.
Regardless of your law firm’s size, the tax and accounting firm of Thomas Jordan, P.A. can help advise the ideal compensation and benefits plan for you. We also provide tax planning and preparation services, with the intention to reduce unnecessary expenses and increase the total profits that will be split among the partners and shareholders. Our accountants have experience with all aspects of compensation, including but not limited to:
- Annuities, pension plans and 401Ks
- Rate calculations and bonuses
- Profit sharing and group incentive plans
- Child care benefits, health insurance, disability and other benefits
- Cost of living adjustments
- Deferred earnings
- Payroll, deductions, and overtime
- Tax deferred contributions
- Wage determination
Thomas Jordan, P.A. realizes that no two firms are the same and has the experience and knowledge to offer customized compensation solutions for tax planning and preparation; structure firm goals; fairly compensate all partners; and strategize with the firm’s decision makers. We work directly with your human resources manager or benefits administrator and provide training as needed.
We welcome the opportunity to discuss our qualifications and relay how we can help your law firm reach its financial goals. If you have a question, or would like more information on our accounting firm and the services we offer to the legal community, please contact us, or call our accounting office at (954) 763-8455.