CPA Services for NJ Medical Practices & Healthcare Professionals

Quick Answer

• Clinical health services performed in a professional capacity generally are Section 199A health SSTBs; mixed or nonclinical activities require a facts-based classification. For 2026, the phaseout begins above $201,750 (single/HoH) / $403,500 (MFJ) and ends at $276,750 / $553,500.
• For an S-Corp owner-employee, supportable W-2 wages are subject to the applicable payroll taxes; properly characterized non-wage distributions generally are not wages for FICA purposes. Duties, services, compensation support, ownership, recharacterization, entity, and complete-return facts control. No fixed income threshold decides an election or produces a savings result.
• Solo 401(k) catch-up contributions are $7,500 for ages 50+ in 2025 ($8,000 for 2026), or $11,250 for ages 60-63 under SECURE 2.0; SEP-IRAs do not permit catch-up contributions.
• NJ Corporate Business Tax (CBT) applies to PCs taxed as C-Corps at rates up to 9% on allocated net income over $100,000. For privilege periods beginning in 2024 through 2028, the 2.5% Corporate Transit Fee generally applies to a covered separate-return C-Corp's taxable net income when taxable net income exceeds $10 million; NJ S-Corps and public utilities are excluded as separate filers. A CBT-100U combined group applies the threshold and fee at group level, and member income from an S-Corp or public utility is not removed from that group computation. Ordinary NJ S-Corp pass-through income generally is taxed to shareholders rather than at the C-Corp entity rates, and the corporation generally pays the tiered minimum CBT ($375 to $1,500 by gross receipts) when it is a standalone entity that is not a QSSS parent or subsidiary. A taxpayer that is a member of an affiliated group under IRC 1504 or a controlled group under IRC 1563 whose total payroll, measured group-wide rather than only in New Jersey, is $5,000,000 or more owes a $2,000 minimum regardless of gross receipts (N.J.S.A. 54:10A-5(e)), and a Qualified Subchapter S Subsidiary is consolidated into its parent's CBT-100S and listed on Schedule Q with its own minimum tax still due and remitted with the parent's payment. A limited entity-level exception applies when Form 1120-S reports income subject to federal corporate income tax, such as certain built-in gains or net passive income: CBT-100S applies the 6.5%, 7.5%, or 9% income-based rate and uses the greater of that tax or the minimum. The statute applies to privilege periods beginning after December 22, 2022; for calendar-year taxpayers, that means January 1, 2023. NJ procedural FAQ and TB-105 also describe the rule as on or after December 22, 2022; an unusual short period beginning December 22 needs Division confirmation. For a covered period, P.L. 2022, c.133 automatically recognizes a valid federal S election unless the entity opts out; the separate CBT-2553 is historical. DORES 1120-filer registration, federal approval proof, Shareholder Jurisdictional Consent, and timely CBT-100S filing remain separate compliance steps and do not condition recognition. Formation date is not the test; earlier periods may require CBT-2553-R retroactive-relief review.
• A New Jersey professional corporation or professional association with more than two licensed professionals also evaluates the annual $150-per-licensed-professional fee on Schedule PC, subject to the $250,000 maximum and current filing instructions.