After serving as an active director of Lee Corp. for twenty years, Ryan was appointed an honorary
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years, Ryan was appointed an honorary director with the obligation
to attend directors’ meetings with no voting power. In 2012,
Ryan received an honorary director’s fee of $5,000. This fee is
Reportable by Lee as employee compensation subject
to social security tax.
Reportable by Ryan as self-employment income subject
to social security self-employment tax.
Taxable as “other income” by Ryan, not subject to any
social security tax.Considered to be a gift not subject to social security
self-employment or income tax.
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date: