In this episode of Keep What You Earn, Shannon breaks down the complex topic of S Corp salary in a way that's easy for anyone to understand. She explains the important requirement for S Corp owners to pay themselves a reasonable salary and delves into the internal and external factors that come into play when determining this salary. Shannon shares expert tips and real-life examples, emphasizing the importance of thorough documentation to support your salary decisions. Plus, she offers listeners a valuable free resource to help them navigate the world of S Corporations with confidence. Tune in to gain a deeper understanding of this crucial aspect of business finance and learn how to optimize your S Corp salary to keep more of what you earn.
What you'll hear in this episode:
03:14 Salary corresponds to business work, profit distributions.
08:24 Use screenshots, consider internal time allocation. Determine reasonable salary based on profession and time allocation.
10:52 Support claims with evidence for successful audits.
If you like this episode, check out:
Determining the Appropriate Salary for an S Corp Owner
Maximizing Finances: Tax & Accounting Synergy
How to Play in the Gray When it Comes to Your Taxes
Want to learn more so you can earn more?
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The information contained in this podcast is intended for educational purposes only and is not individual tax advice. Please consult a qualified professional before implementing anything you learn.