Sneak Peek: Why Reasonable Compensation Matters

In this episode, Shannon discuss the importance of reasonable compensation for S Corporation owners and the risks associated with lowballing your paycheck to evade payroll taxes. Learn about IRS red flags, the potential reclassification of distributions as payroll, and the ensuing penalties. Additionally, discover the benefits of running wages through payroll for retirement contributions and loan applications. Don't miss this insightful discussion on maintaining compliance and achieving your financial goals.

https://doddconsultingllc.com/reasona...

00:00 Understanding Reasonable Compensation
00:14 IRS Red Flags and Reclassifications
00:31 Reporting Wages on Form 1120S
00:55 Consequences of Low Compensation
01:10 Penalties for Non-Compliance
01:29 Retirement Contribution Options
02:04 Benefits of Realistic Compensation
02:18 Proving Income for Loans and Purchases

👉 Don’t forget to like, comment, and subscribe for more payroll insights!

Work with Shannon:
Start by booking a call: https://links.payrollrestoration.com/...
Get 1:1 Support: https://links.payrollrestoration.com/...
Sign up for our Courses: https://links.payrollrestoration.com/...

Join our communities:
Payroll Restoration® Community for Accounting Professionals: https://links.payrollrestoration.com/...
Payroll Restoration® Community for Business Owners: https://links.payrollrestoration.com/...