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| | Avoid Payroll Taxes with EPSP |
 | | However, recently the EPSP has gained considerable popularity with the new legislation of sec 120.4 regarding what is commonly referred to as the "kiddie tax" on split income from family trusts. |
 | | In order to continue qualifying as an EPSP, the trustee of the EPSP must annually allocate, either contingently or absolutely, all of the EPSP income, capital gains and employer contributions to the employees who are beneficiaries of the EPSP. |
 | | In order to establish an EPSP, documents relating to the establishment of the trust, including a Deed of Settlement for the employees profit sharing plan trust, and all related corporate resolutions should be prepared and executed by the appropriate parties. |
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