You are the sole shareholder of an S corporation that earns 150,000 of net income. You then decide to pay yourself a salary from the S corporation in the amount of 150,000, reducing the S corporation net income to zero. What will paying yourself the 150,000 salary do, relative to not paying yourself the salary? You are the sole shareholder of an S corporation that earns 150,000 of net income. You then decide to pay yourself a salary from the S corporation in the amount of 150,000, reducing the S corporation net income to zero. What will paying yourself the 150,000 salary do, relative to not paying yourself the salary? increase the amount of total income subject to income tax but decrease the amount of earned income subject to FICA increase the amount of wage income subject to income tax but decrease the amount of earned income subject to FICA no change to the amount of total income subject to income tax but increase the amount of earned income subject to FICA decrease the amount of total income subject to income tax and decrease the amount of income subject to FICA 

Answer rating: 100% (QA)

The correct answer is increase the amount of wage income subject to income tax but decrease the amou... View the full answer