{"id":258,"date":"2013-06-27T21:14:06","date_gmt":"2013-06-27T21:14:06","guid":{"rendered":"http:\/\/evergreensmallbusiness.com\/?page_id=258"},"modified":"2019-10-14T10:40:49","modified_gmt":"2019-10-14T17:40:49","slug":"setting-low-salaries-for-s-corporations","status":"publish","type":"page","link":"https:\/\/evergreensmallbusiness.com\/ebooks\/setting-low-salaries-for-s-corporations\/","title":{"rendered":"Setting Low Salaries for S Corporations"},"content":{"rendered":"<p><a href=\"http:\/\/evergreensmallbusiness.com\/wp-content\/uploads\/2018\/04\/SCorpSalaries.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-591 alignleft\" src=\"http:\/\/evergreensmallbusiness.com\/wp-content\/uploads\/2018\/04\/SCorpSalaries.png\" alt=\"mattrd39_04\" width=\"227\" height=\"300\" \/><\/a> Need help coming up with reasonable S corporation salaries for your clients? Or perhaps for your own S corporation?<\/p>\n<form action=\"https:\/\/www.e-junkie.com\/ecom\/gb.php?c=cart&amp;ejc=2&amp;cl=23704&amp;i=SCorpSalaries2018\" method=\"post\"><button type=\"submit\">Purchase and Download<\/button><\/form>\n<p><a title=\"View Cart\" href=\"https:\/\/www.e-junkie.com\/ecom\/gb.php?c=cart&amp;cl=23704&amp;ejc=2\">View Cart<\/a><\/p>\n<p>Our <em>Setting Low Salaries for S Corporations<\/em> e-book (price $50) can help. In just under a 100 pages of plain language, it provides rich, detailed information and a straightforward methodology for setting shareholder-employee salaries.<\/p>\n<h2>More Information\u2026<\/h2>\n<p>An S corporation typically saves each shareholder around $8,000 to $10,000 a year in taxes. Which is great.<\/p>\n<p>But problems exist. No specific guideline exists for setting S corporation salaries, for example.<\/p>\n<p>Further, the new Sec. 199A \u201cqualified business income\u201d deduction only complicates matters.<\/p>\n<p>Finally, the S corporation gambit (paying lower salaries to lower payroll taxes) causes tax accountants and their clients to bear risk.\u00a0S corporations, shareholders and tax accountants who set shareholder-employee salaries <em>too low<\/em> risk IRS audits and tax penalties.<\/p>\n<p>To look at just one part of that risk, in a worst-case scenario, the preparer may face a $5,000 penalty.<\/p>\n<p>Thus, our e-book.<\/p>\n<h2>Money Back Guarantee<\/h2>\n<p>Thousands and thousands of CPA firms have purchased our e-books and found them highly practical ways to get up to speed on complex tax law topics. Happy readers include the full range: Small solo practitioners to tax partners in large regional CPA firms.<\/p>\n<p>But all our downloadable e-books come with a money-back guarantee. If you don&#8217;t get value from your purchase and reading, we&#8217;ll happily fully refund your purchase price. (Just send us an email.)<\/p>\n<h2>Table of Contents<\/h2>\n<p>Packed full of clear explanations with dozens of real-life examples, the Setting Low S Corporation Salaries e-book breaks down its subject matter into ten, easy to digest chapters:<\/p>\n<ul>\n<li><em><strong>Chapter 1 \u2013 How S Corporations Save Payroll Taxes.\u00a0<\/strong><\/em>A\u00a0 quick review of how the savings work including a subtlety most S corporation owners don&#8217;t know.<\/li>\n<li><em><strong>Chapter 2 \u2013 Reviewing the Law.\u00a0<\/strong><\/em>An explanation of the actual statute, regulation and revenue rulings that provide the loophole.<\/li>\n<li><em><strong>Chapter 3 \u2013 Common Subchapter S Salary Practices.<\/strong><\/em>\u00a0IRS data about what S corporations actually pay their shareholder-employees.<\/li>\n<li><em><strong>Chapter 4 \u2013 Single Shareholder Situations.<\/strong><\/em>\u00a0 When and how a small sole proprietor can maybe make the S corporation gambit work.<\/li>\n<li><em><strong>Chapter 5 \u2013 The Sec. 199A Deduction Complication.\u00a0<\/strong><\/em> A discussion of how the Sec. 199A deduction works for an S corporation and how to resolve conflicts between the two tax laws.<\/li>\n<li><em><strong>Chapter 6 \u2013 Avoiding Unreasonable Distributions.\u00a0<\/strong><\/em>A sidebar about the importance of also thinking about shareholder distributions.<\/li>\n<li><em><strong>Chapter 7 \u2013 Developing Reasonable Compensation Amounts.\u00a0<\/strong><\/em>An eight-step work plan for setting reasonable compensation amounts for shareholder-employees.<\/li>\n<li><em><strong>Chapter 8 \u2013 Practitioner Case Studies.<\/strong><\/em>\u00a0Practical real-life examples showing how to optimize shareholder-employee salaries in common situations.<\/li>\n<li><em><strong>Chapter 9 \u2013 Risky Practices and Danger Zones.\u00a0<\/strong><\/em>Discussions of common, dangerous S corporation shareholder-employee compensation mistakes.<\/li>\n<li><em><strong>Chapter 10 \u2013 Winning the \u201cReasonable Compensation\u201d Argument.\u00a0<\/strong> <\/em>A step-by-step plan for winning an IRS audit of S corporation compensation.<\/li>\n<li><em><strong>Appendix A \u2013 Revenue Ruling 59-221<\/strong><\/em>. The key primary source that opened the loophole.<\/li>\n<li><em><strong>Appendix B \u2013 Revenue Ruling 74-44.<\/strong><\/em> The revenue ruling that the IRS uses to blow up bad S corporation salaries.<\/li>\n<li><em><strong>Appendix C \u2013 Relevant Portions of H.R. 4213.\u00a0<\/strong><\/em> The law that almost passed and which applies to single-shareholder, single-employee S corporations.<\/li>\n<li><em><strong>Appendix D \u2013 Example Client Letter.\u00a0<\/strong><\/em>\u00a0A boilerplate letter accountants and attorneys can use for their own client mailings.<\/li>\n<li><em><strong>Appendix E \u2013 Example Client Email.\u00a0<\/strong><\/em> A boilerplate email.<\/li>\n<\/ul>\n<h2>More Information About Author<\/h2>\n<p>CPA Stephen L. Nelson is the managing member of Seattle-area CPA firm that specializes in serving privately held companies with multi-state and international operations as well as their owners. A CPA for three-plus decades, Nelson holds an MBA in finance from the University of Washington and an MS in tax from Golden Gate University. A former adjunct tax professor at Golden Gate University, he is also the author of numerous reference books including the bestselling\u00a0<i>QuickBooks for Dummies\u00a0<\/i>and\u00a0<i>Quicken for Dummies <\/i>titles.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Need help coming up with reasonable S corporation salaries for your clients? Or perhaps for your own S corporation? Purchase and Download View Cart Our Setting Low Salaries for S Corporations e-book (price $50) can help. In just under a 100 pages of plain language, it provides rich, detailed information and a straightforward methodology for [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"parent":98,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"class_list":{"0":"post-258","1":"page","2":"type-page","3":"status-publish","5":"entry","6":"has-post-thumbnail"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.3 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Setting Low Salaries for S Corporations - Evergreen Small Business<\/title>\n<meta name=\"description\" content=\"Best-selling author and tax accountant Stephen L. 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