Episode 144
How Much Should I Pay Myself? [E144]
Thanks to our partners, NAPA TRACS, and Promotive
A critical topic for business owners: how much you should pay yourself as an S-corporation owner. This episode clears up common misconceptions around payroll, distributions, and tax savings strategies. Whether you're a small business owner or a shop manager, understanding these financial nuances is crucial for maintaining profitability and compliance.
Key Points:
- Clarification of the S-corporation owner's dual roles as an employee and business owner, and their impact on financial strategy.
- Differences between payroll and distributions and how they affect tax liabilities.
- Why overpaying yourself in wages does not save on taxes and the financial consequences of excessive payroll tax burdens.
- The IRS's guidelines on "fair and reasonable salary" for S-corp owners and how to meet this requirement effectively.
- Social Security contributions: strategies for maximizing benefits while minimizing unnecessary tax burdens.
Thanks to our partner, NAPA TRACS
Did you know that NAPA TRACS has onsite training plus six days a week support?
It all starts when a local representative meets with you to learn about your business and how you run it. After all, it's your shop, so it's your choice.
Let us prove to you that Tracs is the single best shop management system in the business. Find NAPA TRACS on the Web at NAPATRACS.com
Thanks to our partner, Promotive
It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
Paar Melis and Associates – Accountants Specializing in Automotive Repair
Visit us Online: www.paarmelis.com
Email Hunt: podcast@paarmelis.com
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