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You are here: Home / Library / Setting Low Salaries for S Corporations

Setting Low Salaries for S Corporations

By Stephen L. Nelson, CPA

Setting Low Salaries for S Corporations
$50
  • Publisher: Stephen L. Nelson, Inc.
  • Edition: 2nd
  • Available in: PDF
  • Published: August 13, 2018
Buy PDF

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.

More Information…

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.


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