Many clients at this time of year are calling and asking about payroll. They ask us “do I need to take payroll”, or we hear I take payroll but it turns out that they just transfer money from their business account into their personal bank account; this is not payroll.
If you are an S Corp business you are required to take reasonable payroll. We determine that by the wages you would pay someone to do your job, or how much it takes you to cover your living expenses. Please call us if you have any questions about this so we can make sure your following the law.
Here is an article that you may like to read about audits that are happening to S Corporations.
Again, we are here to help so please give us a call.
Cammy Jensen
Dianna Iwaniec