Distributions paid to an S corporation shareholder employee are not wages, and therefore not subject to self-employment
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Question:
Distributions paid to an S corporation shareholder employee are not wages, and therefore not subject to self-employment tax if:
a. The shareholder receives reasonable wages for services performed.***
b. The shareholder performs services, and receives no compensation.
c. All of the business income is from the personal services of the shareholder. *
d. None of the income is from capital or equipment.
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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