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Accounting & Bookkeeping & Small Business Forum
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Guest
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| Posted: Wed Mar 10, 2004 11:44 am Post subject: payroll and S-corps |
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| If I have an S-Corp and it is 100% Rental Real Estate, do I still have to pay myself "reasonable wages?" If I read correctly real estate is not subject to self employment tax, but as an S-Corp. I am supposed to pay myself a "reasonable wage." Which one takes precedent? What should I do? |
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Guest
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| Posted: Fri Mar 19, 2004 10:31 pm Post subject: RE: payroll and S-corps |
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| I assume you are talking US tax law here. In an S-Corp you are always required to pay a "reasonable wage" regardless of holdings. The profits from this corporation are passed on to the stockholders as passive income which is not subject to self-employment (FICA) taxes. |
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