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S Corporation Employees, Shareholders and Corporate Officers

    https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-employees-shareholders-and-corporate-officers
    Mar 16, 2021 · Such payments to the corporate officer are treated as wages. Courts have consistently held S corporation officers/shareholders who provide more than minor services to their corporation and receive, or are entitled to receive, compensation are subject to federal employment taxes.

Paying shareholder employee wages, dividends and draws

    https://evergreensmallbusiness.com/small-business-faq/how-does-a-corporation-pay-a-shareholder/
    Shareholder Dividend and Distribution Payments. When a corporation pays a shareholder a dividend or distribution, the payment needs to be categorized not as an expense or a tax deduction but a draw, or reduction, in retained earnings. If you’re using an accounting program like QuickBooks, you want to look for an owner’s equity account ...Estimated Reading Time: 5 mins

Paying Compensation vs. Dividends in a Closely Held C ...

    https://danthecpa.com/paying-compensation-vs-dividends-in-a-closely-held-c-corporation-the-tax-implications/
    Jan 08, 2015 · The first $50,000 of corporate income is taxed at 15%, so total federal corporate income tax would be $7,500 ($50,000 × 15%). The remaining $42,500 would be paid out to the shareholder-employee as a dividend. Corporate Taxation Insider illustrates this strategy in charts.Estimated Reading Time: 3 mins

What Is a Reasonable Salary for an S Corporation Officer?

    https://www.thebalancesmb.com/what-is-a-reasonable-salary-for-an-s-corporation-officer-397939
    Sep 17, 2020 · The IRS requires that distributions and other payments by an S corporation to a corporate officer must be treated as wages "to the extent the amounts are reasonable compensation for services rendered to the corporation."Estimated Reading Time: 5 mins

Can a corporation deduct dividend payments before its ...

    https://www.investopedia.com/ask/answers/06/deductdividendpayments.asp
    Dividends and Unit Trust Taxation. Corporations may not legally deduct the dividend payments before taxes but there is another approach: a corporate structure called an income trust. Income trusts ...

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