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Wage Compensation for S Corporation Officers

    https://www.irs.gov/pub/irs-news/fs-08-25.pdf
    The Internal Revenue Code establishes that any officer of a corporation, including S corporations, is an employee of the corporation for federal employment tax purposes. S corporations should not attempt to avoid paying employment taxes by having their officers treat their compensation as cash distributions, payments of personal expenses, and/or loans rather than as wages.

S Corporation Compensation and Medical Insurance Issues ...

    https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-compensation-and-medical-insurance-issues
    S corporations must pay reasonable compensation to a shareholder-employee in return for services that the employee provides to the corporation before non-wage distributions may be made to the shareholder-employee. The amount of reasonable compensation will never exceed the amount received by the shareholder either directly or indirectly.

S Corporation Employees, Shareholders and Corporate Officers

    https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-employees-shareholders-and-corporate-officers
    Mar 16, 2021 · Such payments to the corporate officer are treated as wages. Courts have consistently held S corporation officers/shareholders who provide more than minor services to their corporation and receive, or are entitled to receive, compensation are subject to federal employment taxes.

What Is a Reasonable Salary for an S Corporation Officer?

    https://www.thebalancesmb.com/what-is-a-reasonable-salary-for-an-s-corporation-officer-397939
    Sep 17, 2020 · S Corp Officer Wages Must Be Reasonable The IRS requires that distributions and other payments by an S corporation to a corporate officer must be treated as wages "to the extent the amounts are reasonable compensation for services rendered to the corporation."Estimated Reading Time: 5 mins

Solved: S-Corp Officer Compensation: How to enter owner eq...

    https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/s-corp-officer-compensation-how-to-enter-owner-equity-and/00/798825
    Feb 23, 2021 · When setting up an owner's draw, you'll want to set it up as an equity account instead of an expense. Create a new account for the owner's draw and set it up as an Owner's Equity account. Inactivate the Compensation of Officers account if necessary. I take it that you've already entered the withdrawal as an Expense transaction. You'll want to ...

What is Reasonable Compensation for an S Corporation?

    https://www.firmofthefuture.com/content/what-is-reasonable-compensation-for-an-s-corporation/
    According to the instructions on Form 1120S, U.S. Income Tax Return for an S Corporation, “Distributions and other payments by an S corporation to a corporate officer must be treated as wages to the extent the amounts are reasonable compensation for services rendered to …

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