Tax Planning When Employment Is Terminated Executives struggling through a job change caused by a corporate downsizing or restructuring frequently overlook the tax and financial consequences of events associated with the layoff or termination. Yet, positive handling of these aspects may ease the executive's transition through the career change.   Save Taxes by Employing Family Members Employing family members (usually children or grandchildren) who are in a lower tax bracket than the business owner can shift taxable income to those individuals, thus reducing the family's overall tax burden. Not only is income shifted from the parent to the child, if the child is a minor, payroll taxes can quite often be avoided. In addition, the child's compensation is earned income, which allows the child to contribute to an IRA.   The New Health Savings Account The President recently signed legislation authorizing Health Savings Accounts (HSAs), which are targeted mainly at self-employees, small business owners, and employees of small to medium size firms. It is important to understand that, while this new tax break was included in the recent Medicare Act, you don't have to be a senior citizen to benefit.