S-Corp Reasonable Salary? My husband and I are sole owners of an S-Corp. I've been wondering what is the right amount to pay him as a salary, as I hear conflicting things. The IRS web site says something about paying a larger percentage of profits as wages if revenue generated by shareholder/employee makes up a the bulk of the revenue. One accountant told me 45% of net income, others have said to compensate for what we would normally pay an employee to do the same work. Which is correct?
Also, I'm wondering if I need to pay myself a salary. I do bookkeeping, about 2 hrs a week and the annual corporate tax return.
Last edited by taxpadewon : 03-08-2011 at 02:12 AM.
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