The Owner's Compensation: How Much Is Enough?

The Owner’s Compensation: How Much Is Enough?

What is reasonable owner’s compensation? The IRS says it’s what an owner/employee should be paid. This concept can be somewhat elusive since there is no hard set of rules. It’s based on the facts and circumstances of each individual case. However it is an important question, especially for S Corp owners, as this is an area of audit concern for the IRS. Since most people want to pay as little in taxes as possible, the owner’s motivation may not drive him to the right decision in determining his own compensation.

For more information, read the article What Is Compensation?

If you are looking for an affordable way to pay compensation to your employees, take a moment and check out our web based online payroll.

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