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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (116631)	5/27/2005 1:29:26 PM
From: Neeka	Read Replies (1) \| Respond to of 793742

By arbitrary I meant that the owner of a subchapter S corp may change his or her salary to fit his specific circumstances. The example in Rush's piece showed a $50,000 income to the owner on a $500,00 year corporate income. One of, but not all of, the reasons an owner would pay himself that low of a salary (considering that $500,000 is a great deal of money and he could probably afford to pay himself more if he wanted provided he isn't investing 100% of the profits back into the corp) could be to avoid paying more into SS and FICA. He's going to receive all that is left in the form of dividends anyway (which of course are exempt from FICA and medicare taxation). BTW.......it isn't mandatory that a subchapter S corp carry FUTA for office holders who are also salaried.