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An S-Corporation payroll and distribution calculator helps determine the optimal salary-to-distribution split for S-Corp shareholders. The IRS requires a "reasonable salary" subject to payroll taxes; distributions above salary avoid self-employment tax. At $200,000 profit, a $80,000 salary + $120,000 distribution saves ~$15,000 in self-employment taxes.
Guida passo passo
- 1Elect S-corp status
- 2Set reasonable salary
- 3Take distributions
- 4File Form 2553
Esempi risolti
Ingresso
$200k business income, $80k salary
Risultato
~$9,000 SE tax savings
vs sole proprietorship
Errori comuni da evitare
- ✕Not verifying results
- ✕Ignoring jurisdiction
Domande frequenti
What does this calculator do?
Identify calculation need
How do I use this calculator?
Input required values
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