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The net income on your personal tax return would be $50,000, and it’s treated as self-employment income and subject to the 15.3% FICA tax, plus personal income tax. In the above listed cases the shareholders failed to report any wages from their S corporations. In a 2012 case the shareholder received wages of $24,000 per […]

The election to be an S Corp must be made within a timeline specified by the IRS in order to take effect for a tax year. Exceptions may be made if the late election is due to reasonable cause. These forms of compensation are not subject to FICA tax because shareholders must pay tax on