What is a reasonable wage for S corporation owners?
. Ideally, the best way to set pay is to use an amount comparable to an individual being paid similar rate in your industry. Another good “rule-of-thumb” is a standard rule of 50\50. Basically, 50% of income available to owners should be taken as wages and the other 50% should be taken as dividends. Q. Which items qualify for a cafeteria plan deduction? A.The main items consist of Qualified dependent care costs, disability income * accidental insurance, group-term life, dental, & health insurance premium costs, and medical cost not covered by insurance. Any unused amounts in a particular category are lost by the employee and reverts to employer by the end of the plan year. Q. Do I need to visit your office to have my taxes prepared? A. It is not necessary to visit our office. Many clients utilize the mail or express services to send their information to us. For new clients, we encourage a meeting so that we can discuss your unique tax situation. We also ask that our new clients provide
