- Publisher: Stephen L. Nelson, Inc.
- Edition: 2nd
- Available in: PDF
- Published: August 13, 2018
Need help coming up with reasonable S corporation salaries for your clients? Or perhaps for your own S corporation?
Our Setting Low Salaries for S Corporations e-book (price $50) can help. In just under a 100 pages of plain language, it provides rich, detailed information and a straightforward methodology for setting shareholder-employee salaries.
An S corporation typically saves each shareholder around $8,000 to $10,000 a year in taxes. Which is great.
But problems exist. No specific guideline exists for setting S corporation salaries, for example.
Further, the new Sec. 199A “qualified business income” deduction only complicates matters.
Finally, the S corporation gambit (paying lower salaries to lower payroll taxes) causes tax accountants and their clients to bear risk. S corporations, shareholders and tax accountants who set shareholder-employee salaries too low risk IRS audits and tax penalties.
To look at just one part of that risk, in a worst-case scenario, the preparer may face a $5,000 penalty.
Thus, our e-book.