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Originally Posted by orion_joel If you were to pay yourself as a contractor though then it may be easier i think. You create an invoice in your personal name just in excel using there template, then the S-Corp pays that invoice in case(take the money from the atm) or cheque or what ever you like. Then you keep records of what pay you have received and you should be able to file your tax return as normal, except you have been receiving the income as a contractor rather then an employee. |
An Officer or Shareholder preforming services for a corp is an employee and not a contractor. I suggest you review the IRS article at this link:
http://www.irs.gov/businesses/small/...112602,00.html
One paragraph quoted here:
S Corporation Officers Performing Services Are Employees; Pay Is Wage
Headliner Volume 53
August 28, 2003
The Internal Revenue Service wants tax professionals and small business owners to understand the law regarding corporate officers who perform services. By law, officers of corporations are employees for employment tax purposes and their compensation is wages. The IRS has identified that some S corporations, in an effort to avoid employment taxes, are improperly treating payments for services to officers as ?corporate distributions? instead of salaries. This attempt to characterize officers as other than employees does not work. This article discusses the tax law and recent court cases related to this issue.