Setting Low S Corporation Salaries

Need to set a reasonable but low salary for your S corporation? I have a resource for you.

Updated for 2017, my "Setting Low S Corporation Salaries" e-book provides background information on the S corporation tax loophole, shares expert insights regarding recent Congressional and IRS action, provides average salary data by small business size and industry, and gives actionable tips you can use to safely set tax-saving salaries.

This short (40pp) e-book provides the information you need to save thousands of dollars a year with your S corporation--but in a way that minimizes both the chance that your S corporation tax return will be examined and the chance your S corporation salary will be rejected by the Internal Revenue Service.

For more information, you can scroll down and review the table of contents. Or if you're ready to buy and download the ebook, use the button below. Purchase and Download

Table of Contents

  • Introduction
  • How Low S Corporation Salaries Save Payroll Taxes
  • When Low S Corporation Salaries Don't Save Money
    • Gotcha #1: Extra Fees and Out-of-pocket Expenses
    • Gotcha #2: State Income Taxes
    • Gotcha #3: Multiple Shareholder-employees
    • Summarizing what the "Gotchas" Mean in Practice
  • How S Corporations Commonly Set Salaries
    • Average S Corporation Salaries
    • S Corporation Salaries Across Different Size Businesses
    • S Corporation Salaries Across Different Industries
    • Treasury Inspector General Pronouncements
  • What the IRS and Courts Say On-the-record
  • What the Internal Revenue Service Says Off-the-record
    • One-Man S Corporation Salaries
    • The Surprising Impact of the American Jobs & Closing Tax Loopholes Act
    • When There Are Other Employees and Capital Investments
    • Unofficial Minimum Salaries and Safe Harbor Amounts
  • Ten Tips For Setting S Corporation Salaries
  • What Knowledgeable Tax Practitioners Often Recommend
  • Applying the Rules in Practice
    • Example #1: The One-Person Service Business that Makes $80,000 Annually
    • Example #2: The High-priced Professional that Makes $500,000 Annually
    • Example #3: The Semi-inactive S Corporation Making $20,000 Annually
    • Example #4: The Traditional Small Business With Employees and/or Assets
  • Conclusion
  • Appendix A - Understanding H.R. 4213: American Jobs & Closing Tax Loopholes Act
  • Appendix B - Relevant Portions of H.R. 4213 (including Sec. 413)
Purchase and Download