Goldilocks wanted her porridge “not too hot” and “not too cold.” She wanted it “just right.”
In the same way, as an S corporation owner who wants to pay lower payroll taxes, you should set your salary at a level that’s “just right.”
In other words, you should pay yourself an amount that’s…
LOW enough to save you money on taxes, but…
HIGH enough to keep the IRS happy (and avoid the risk of audit)
If you want to learn how to use an S corporation salary-reduction technique to legally lower your payroll taxes, don’t miss my new article titled Tax Tips: How S Corporation Owners Can Cut Taxes by Keeping a Lid on Their Salaries.
Three ways our fact-filled article can help you:
- You’ll learn how to pay yourself a “reasonable” salary. What does the IRS consider to be “reasonable”? We’ll list the three steps you have to follow to determine the correct amount when you read the full article.
- We’ll tell you what raises red flags at the IRS. Your friendly IRS agent is most likely to question your compensation when you take distributions but don’t take a salary. We’ll tell you how to stay out of trouble with Uncle Sam when you read the full article.
- We’ll introduce you to David Watson, Sean McAlary, and Frederick Blodgett. These three gentlemen went up against the IRS, and the decisions that flowed from their cases are important for you to understand. We’ll explain the implications for your S corporation when you read the full article.