1. EachPod

110 \\ How to Pay Yourself Right: W2 Salaries vs. Equity Distributions for S-Corp Owners

Author
Tiffany Phillips - CPA, Small Business Money Mentor, Financial Expert
Published
Thu 06 Jun 2024
Episode Link
https://smallbusinessfinance.podbean.com/e/110-paying-yourself-mastering-w2-salaries-and-equity-distributions-for-business-owners/

In this episode, I break down one of the biggest questions business owners face:

“How much should I pay myself in salary, and how much can I take as a distribution?”


We cover:



  • What “reasonable compensation” actually means (and how the IRS looks at it)

  • Why guessing your salary is risky—and how to calculate it the right way

  • The benefits of keeping your salary as low as justifiable to reduce payroll taxes

  • How distributions work, when you can take them, and why they aren’t taxed twice

  • How to handle cash flow and tax payments using distributions

  • The mindset shift needed when moving from employee to owner


If you’re an S-corp owner, stop winging it when it comes to paying yourself. Learn how to protect yourself from IRS scrutiny and optimize your take-home cash without paying unnecessary taxes.


 


Next Steps:


💰Pay Less in Taxes – Start Here! 💰


☎️ Are you overpaying in taxes every year?  Schedule a FREE discovery call to find out!


📧 Contact Me --> [email protected] 


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