First State CPAs and Associates

15 hours ago

𝗛𝗼𝘄 𝗱𝗼 𝗜 𝘀𝗲𝘁 𝘂𝗽 𝗺𝘆 𝗽𝗮𝘆𝗿𝗼𝗹𝗹 𝘀𝘆𝘀𝘁𝗲𝗺 𝗳𝗼𝗿 𝗧𝗿𝘂𝗺𝗽 𝗔𝗰𝗰𝗼𝘂𝗻𝘁 𝗰𝗼𝗻𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻𝘀?

When adding employer contributions to a child's account, your payroll software needs specific mapping to process and track transactions accurately.

Here are the core steps:
• Set up your system for employer-paid contributions only, keeping paycheck deferrals off the table for now.
• Label transactions as a Section 128 Employer Contribution when routing funds to the child's account trustee.
• Map total annual contributions directly to Box 12 on Form W-2 using Code TA.
• Give participating employees a written statement by January 31 showing total contributions made to their dependents' accounts during the previous calendar year.

Comment SETUP below, and we can help you check your payroll mapping before rolling out new benefits. ... See MoreSee Less

First State CPAs and Associates

3 days ago

𝗖𝗮𝗻 𝗳𝘂𝗻𝗱𝗶𝗻𝗴 𝗧𝗿𝘂𝗺𝗽 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝘀 𝗵𝗲𝗹𝗽 𝗺𝘆 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝘀𝗮𝘃𝗲 𝗼𝗻 𝘁𝗮𝘅𝗲𝘀?

Yes. Direct employer contributions to a child's Trump Account are exempt from federal income tax withholding, Social Security tax (6.2%), and Medicare tax (1.45%).

That 7.65% total FICA exclusion applies to both you and your employee.

Here's how that math breaks down annually:
• 1 participating employee (up to $2,500 contribution): $191.25 saved in payroll tax
• 10 participating employees: $1,912.50 saved
• 25 participating employees: $4,781.25 saved
• 50 participating employees: $9,562.50 saved

Instead of paying those funds to the Treasury, you're redirecting them into a corporate tax deduction and building goodwill with your team.

Want to see if adding this benefit fits into your tax strategy? DM us and we can review your options. ... See MoreSee Less