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W2 Wages For S Corporation Officers

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See: Wage Compensation for S Corporation Officers<

When corporate officers perform services for the corporation, and receive or are entitled to receive payments, their compensation is generally considered wages.  Subchapter S corporations should treat payments for services to officers as wages and not as distributions of cash and property or loans to shareholders… 

"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."

As your accounting and tax consultants, we advise our S Corporations to pay a Reasonable Salary to its officers who work for the company.

What are reasonable wages or reasonable compensation? That depends on, the locality, the industry, and the roles that the officers play in the company.

It is a tailor-made figure, that we will discuss with you.