Tread carefully when determining compensation for S corp. shareholder-employees
Tread carefully when determining compensation for S corp. shareholder-employees Determining Compensation for S corp. Shareholder-Employees: By distributing profits in the form of dividends rather than salary. An S corporation and its owners can avoid payroll taxes on these amounts. Because of the additional 0.9% Medicare tax on wages in excess of $200,000 ($250,000 for joint filers and $125,000 for married filing separately). The potential tax savings may be even greater … Read more