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Wage Compensation for S Corporation Officers

    https://www.irs.gov/pub/irs-news/fs-08-25.pdf
    The instructions to the Form 1120S, U.S. Income Tax Return for an S Corporation, state "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."

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 · When corporate officers perform a service for the corporation and receive or are entitled to payments, those payments are considered wages. The fact that an officer is also a shareholder does not change this requirement. Such payments to the corporate officer are treated as wages.

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: 4 mins

How to Determine a "Reasonable" Salary for Corporate ...

    https://chugh.net/how-to-determine-a-reasonable-salary-for-corporate-owners-and-officers/
    Apr 02, 2020 · Owners and officers of S corporations and C corporations may adjust the amounts of compensation they receive from various sources in order to lower taxes. However, according to US tax law, officer compensation must be “reasonable” to be tax deductible. It is imperative to consult an experienced CPA to develop a reasonable compensation structure for your company’s leadership.Estimated Reading Time: 3 mins

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