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https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-employees-shareholders-and-corporate-officers
https://www.thebalancesmb.com/what-is-a-reasonable-salary-for-an-s-corporation-officer-397939
Each year, when you complete the income tax forms for your corporation or S corporation, you must report corporate officer salaries if the …
https://www.hallkistler.com/s-corporation-officer-must-take-a-salary/
If you work for the corporation, you generally must take a salary. An officer who performs more than minor services for a corporation, and who receives remuneration in any form, is considered an employee and is subject to employment taxes. In recent years, the IRS has become more aggressive in auditing S corporations on this point.
https://www.irs.gov/pub/irs-news/fs-08-25.pdf
Generally, an officer of a corporation is an employee of the corporation. The fact that an officer is also a shareholder does not change the requirement that payments to the corporate officer be treated as wages. Courts have consistently held that S corporation officer/shareholders who provide more than minor services to their corporation and
https://ttlc.intuit.com/community/business-taxes/discussion/does-a-officer-of-a-c-corporation-have-to-report-all-compensation-for-payroll-tax-purposes-or-can-a/00/672234
Does an officer of a corporation have to report all compensation for payroll tax purposes? it depends on how you define compensation. salary - yes, reimbursement under an accountable plan - no, pay officer's personal expenses that are expensed on corp books - yes.
https://www.robertschriebman.net/articles/an-officer-of-a-corporation-or-llc-is-a-statutory-employee/
If you are an officer of a small corporation or LLC, you are by law deemed to be a “statutory employee”. You must have federal and state employment and withholding taxes taken from your paycheck; the employer – the corporation or LLC – must pay the employer’s portion of …
https://www.nolo.com/legal-encyclopedia/s-corporations-salaries-an-irs-hot-button-issue.html
The IRS Inspector General found that in 2000 about 440,000 single shareholder S corporations paid no salary to their owners, costing the government billions in lost payroll taxes. As a result the IRS stepped up enforcement on this issue and audited thousands of S corps that paid their owners little or no salary.
https://www.thebalancesmb.com/how-business-owners-are-paid-by-the-business-397358
Corporation and S corporate officers who are involved in the day-to-day running of a business are considered employees and they must take a salary and employment taxes must be paid on that salary. In addition, S corporation shareholders may take additional distributions of profit from the business.
https://www.forbes.com/sites/anthonynitti/2016/05/13/reasonable-compensation-for-c-corporation-shareholder-employees-how-much-is-too-much/
From a tax perspective, however, the choice matters: if you take compensation, you are subject to payroll taxes at the corporate and individual level, and will pay tax on the compensation income ...
https://quickbooks.intuit.com/r/payroll/salary-or-draw-how-to-pay-yourself-as-business-owner/
Well, because many business entities don’t allow you to take a salary. Let’s take a look at each type of business entity and how this impacts the salary vs. draw decision. Paying yourself as a sole proprietor Payment method: Owner’s draw
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