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Accounting, Payroll & Pension Issues/self employment taxes
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Question
We have a S-coorporation..Three partners.We pay 1/2dividends and he other half officers salary(our payroll).There any way We can pay everything at the end of the year, instead of paying quaterly taxes?..Basically my question is ..there any way to avoid this self emploment taxes? thank-you for your future answer...guillermo
No, the IRS will expect a reasonable salary number. Auditors tell me it is the one of the surest ways to draw attention for an audit for a S-Corp is to take the money out entirely in dividends.
You may have room to shift the ratio from 50/50 but you'll never get down towards zero.
God luck
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Accounting, Payroll & Pension Issues
Answers by Expert:
Ed McFarland
Expertise
Over 20 years of experience as a CFO, Controller and now Consultant to small businesses. Dealt with 401k, 403b, deferred comp plans, key man issues, disablity, business continuation plans, HSA plans and other benefit issues.
Experience
Management experience in Financial Services, Manufacturing, Media, Logistics. Taught graduate and undergraduate business courses.
Education/Credentials
MBA
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