sole proprietorship getting payroll from a PEO

Technical topics regarding tax preparation.
#1
zl28  
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Taxpayer is a sole propiertorship.

He has high healthcare.

He wants to be part of a PEO to get better healthcare.

A scenario will be he'll give the PEO 2k per month.

PEO keeps $125 for their fee.

He gets a paycheck stemming from this 2k.

And healthcare is provided since he is an employee of the PEO.

seems like the drawndown of this is the health insurance might not be tax deductible and

of course, the cosmetics of a sole proprietor giving $ to a PEO who in turn pays him a w2 salary isn't

so wonderful, but not sure it's so terrible since it effectively comes out the same if he took no payroll.

Appreciate thoughts.
 

#2
Nilodop  
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#3
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The PEO's I have experience with require two employees to even start a program, but you have the overriding factor of the sole proprietorship.
 

#4
fish  
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Nilodop wrote:https://www.parkertaxpublishing.com/public/irs-cpeo.html


How did you have this to reply with? This is a serious question. Do you go look for the answer to the question - presumably because you're bored and/or exercising your brain? Or do you just remember everything you've ever read?
 


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