S corporation owners: Don’t pay yourself on a 1099!

Attention S corporation owners!

Do you pay yourself with a 1099-MISC?

OR

Do you pay yourself on both a W-2 and a 1099?

If you’re answering “yes,” stop right now and read my new article!

You see, you could be in big trouble and face severe IRS problems.

Oh, I know. Paying yourself on a 1099 or on a W-2 and 1099 makes your life easier. No payroll taxes. No withholding deposits. No payroll services to deal with.

But again, if you go this route you’re asking for trouble with Uncle Sam. I’ll explain this fully when you read my new article titled Tax Tips: Don’t Defeat Your S Corporation by Paying Yourself on a 1099!

Three ways our fact-filled article can help you:

1. We’ll tell you the two major problems with paying yourself on a 1099. First of all, you’ll be in violation of the tax law. That’s because you have to pay yourself a salary and it can’t be in the form of 1099 payments. Second, you’ll be exposed to massive tax liabilities and penalties when you don’t pay yourself on a W-2. All will be explained when you read the full article.
2. You’ll learn why you shouldn’t be paid on both a 1099 and a W-2. For starters, you’ll be overpaying employment taxes. What’s more, your tax life will become much more complicated as you’ll learn when you read the full article.
3. We’ll tell you why it pays to keep things simple. Here’s some real good advice. Keep business deductions inside the S corporation and pay yourself reasonable compensation as a W-2 wage. When you do, you’ll save yourself time, money, and headaches. You’ll get all the details when you read the full article.