06Jun 2022
If I take no distributions from an S-Corp, do I need to be page wages?
For the purposes of the PPP program, owner’s draws are not included as payroll costs. Instead, your payroll costs include only the earnings you are taxed on. Since owner’s draws are not taxed, they are not considered payroll and not covered by the PPP loan program. The IRS requires that all S corp owners, also known as shareholders, who are actively involved in running the business receive a W-2 salary. A sole proprietorship is an unincorporated business structure that has a single business owner. It’s relatively easy to set up and is common among self-employed contractors and consultants. Taxpayer’s...
Read post →
