S-Corporations Must Pay Owners A Resasonable Wage for Services Provided

This isn’t really new its just a reminder. You can not provide services within your S-Corporation and avoid paying payroll taxes on amounts that are easily identifiable as wages. The proper way to avoid this trap is to take a reasonable amount for the services you provide for your S-Corporation then if you have excess profit you can occasionally pull some money without charging it through payroll. Failure to follow this advice could end up costing you a bundle.

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