What counts as a “reasonable salary” for an S-corp owner?
Paying yourself too little invites an audit; paying too much wastes the S-corp's main benefit. Here's how we set the number.
Insights
What we're explaining to clients this season, written down so you don't have to wait for a meeting.
Paying yourself too little invites an audit; paying too much wastes the S-corp's main benefit. Here's how we set the number.
Employers withhold 22% on most RSU income. If your bracket is higher, the difference shows up at filing time.
Profit tells you whether the business works. Cash tells you whether it survives the next quarter.