Hartford Business Journal

www.HartfordBusiness.com • April 1, 2019 • Hartford Business Journal 9 FOCUS ing, financial services, athletic and a few others. If you are practicing in one of those disciplines, then your 20 percent deduction will get phased out as you earn more income. Since the upper limit for qualify- ing for any portion of this deduction for a SSB is $415,000, as your income approaches the $415,000 limit for filing jointly (or $207,500 for other tax filers), this 20 percent deduction gets phased down to 0 percent. In other words, if you have a SSB and you make more than $415,000 (filing jointly) you will lose this 20 percent deduction for your tax returns. Another hurdle relates to wages paid to your employees. The deduc- tion can be limited if you are practic- ing as a SSB as discussed above, and it can also be limited if you do not pay enough wages to your employees. Once you cross over that $315,000 income threshold, the tax rules require you to consider how much you have paid your employees (including payroll paid to the business owner) as wages. To make this calculation even more complicated, the tax law allows a business to use some of its assets to help meet certain thresholds. In summary, Congress created this beneficial, but complicated, 20 per- cent deduction to give pass-through business owners a significant tax reduction. Brenden Healy is a CPA and tax partner at Hartford-based accounting and consulting firm Whittlesey. it will contribute up to 5 percent of an employee's annual salary, capped at $6,500, to a 401(k) to help repay student loans. That par- ticular type of benefit may not be eligible for a tax credit under the bill recently passed out of the higher-ed committee because it's not a direct payment to a loan service provider, but it does show compa- nies have been getting the message about the student loan debt crisis. Student loan debt in the U.S. reached more than $1.5 trillion at the end of 2018, three times higher than 2006. And, in Connecticut, the problem is exacerbated by the high cost of living for Millen- nials. "We have the most talented workforce in our industry and benefit immea- surably from the education and expertise they bring to their work," Travel- ers Chairman and CEO Alan Schnitzer said when the com- pany announced the rollout of its program. "Yet many of our col- leagues all too often struggle to save for retire- ment because student loans weigh so heavily on their finances. Investing in their education shouldn't stop our employees from investing in their future. We are promoting a standard of em- ployee care that enables them to do both." Mary Henry, CFO of Hart- ford-based Foley, which provides compliance, financial and insurance services for the transporta- tion and employment industries and House Minority Leader Themis Klarides, (R-Derby) Michelle Rakebrand, lobbyist, Connecticut Business & Industry Association Continued on page 11 >> NOMINATE TODAY! WWW.HARTFORDBUSINESS.COM/OUREVENTS DEADLINE: MAY 20TH EVENT SPONSOR: PRESENTED BY: PRESENTING SONSORS: EDUCATION LEADERSHIP SPONSOR: FORTY 40 UNDER FORTY FORTY FORTY 40 40 40 DO YOU KNOW A YOUNG PROFESSIONAL WHO IS IN A LEAGUE OF THEIR OWN? Hartford's Travelers Cos. is unveiling a student loan repayment benefit in January. PHOTO | CONTRIBUTED

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