Business Tax Deductions

Prorated Fees

WCG’s advisory engagements are billed on an annualized basis and are tied to defined deliverables and scheduled advisory touchpoints. These typically include tax return preparation and review, a pre-planning meeting, a tax projection deliverable and review, and periodic scheduled quick chats (May to Nov). Our Business Advisory Services (BAS) engagements also include tax advisory meetings and an end-of-year wrap-up meeting. Because these services are scheduled and delivered over the course of the year, our annual advisory fee does not fluctuate based on when individual services are used or delivered.

When an engagement begins partway through the year, the total annual fee is prorated over the remaining months of the year. As a result, the monthly billing amount will be higher, even though the annual fee itself remains unchanged and reflects the full scope of advisory work to be delivered.

The August Switch-A-Roo

Beginning in August, WCG no longer bundles tax return preparation into new annual advisory engagements. Frankly, bundling everything into a single monthly number can look unusually high and distract from the actual year-round planning work we deliver. Instead, advisory services will be structured as a custom annual fee covering the remaining or needed planning and advisory work, including pre-planning meetings, tax projections and reviews, tax advisory meetings, periodic scheduled quick chats, and an end-of-year wrap-up meeting.

Tax return preparation including review will be invoiced separately at the time the tax return is prepared, typically during the following tax season. This structure more closely aligns advisory fees with year-round planning work and separates compliance services that occur at a different point in time.

Payroll Processing

WCG has shifted payroll to a setup-and-planning model. Ongoing payroll processing is not sustainable at the market price point for a CPA firm, and this change allows our tax advisors to focus on higher-impact tax planning and strategy for clients. It also allows our team to spend more time on tax return optimization. In short, we are doubling down on what we do best.

We continue to support payroll through proper account setup, training, and payroll planning, while ADP handles the compliance engine, including calculations, filings, deposits, and year-end forms. This approach provides clients with flexibility and control while ensuring payroll is handled correctly. Learn more here.

Tax Returns

You can prepare your own individual tax return as well… but the benefit of WCG preparing both individual and business tax returns is that we can slide things around depending on income limitations, phaseouts, Section 199A deduction optimization, pass-through entity tax deductions (PTET), etc. Having our arms around both worlds can create real tax savings!

Note: An individual tax return is what the IRS calls Form 1040 and refers to the entity filing the tax return (you, the individual, are the entity). However, a married couple are deemed to be one entity for the sake of an individual tax return. So, when we say we will prepare your individual tax return, it is meant to include your spouse in a jointly filed happy happy joy joy tax return.

Break-Even Analysis (does an S Corp make sense?)

Break-even analysis is based on our annual advisory fee of $4,500 for our Vail package plus the expected cost of you processing your payroll through ADP of around $900. If an S corporation saves you 8% to 10% (on average) in taxes over the garden-variety LLC, then $5,400 divided by 9% equals $60,000 of net ordinary business income (profit) after expenses and deductions.

This doesn’t factor in the lower audit rate of S Corps versus Schedule C activities, plus the ability to use business funds to pay for your state income taxes otherwise known as the Pass-Thru Entity Tax Deduction (PTET) or the great SALT workaround.

More sales pitch! Keep in mind that our fee of $4,500 includes your individual tax return which you might already be paying another tax professional to prepare. WCG CPAs & Advisors has a handful of clients who are right at the break-even point of $60,000 but leverage an S Corp and our services to get tax return preparation, tax strategies and consultation.