Tag Archives: S CORP SALARIES

S CORP OFFICERS ARE EMPLOYEES: IF THEY PERFORM SERVICES, DISTRIBUTIONS WILL BE RE-CHARACTERIZED AS WAGES IN AMOUNT OF DETERMINED REASONABLE COMPENSATION

Yet another court has held that under the Federal Insurance Contributions Act (FICPA), an officer of an S Corporation is an employee and must be paid reasonable wages if he or she performs services.  Distributions will be re-characterized as wages, … Continue reading

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