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Posts tagged "employee"

Reasonable compensation for corporate shareholders

In a recent blog post, we discussed some tax considerations when incorporating a business. Once a business reaches profitability, an owner or shareholder of an S corporation can take distributions of company profits, which do not require withholdings or payroll taxes.

Tax-exempt organizations and the IRS: political fallout continues

Regardless of political persuasion, the collection of taxes by the government is supposed to be done in an even-handed way. It is not supposed to favor some political groups over others. Otherwise taxes become an exercise in oppression.

More on worker classification: possible FLSA issues

This is a follow-up to our November 20 post on the difficulty of distinguishing independent contractors from employees. The distinction is of course important not only for payroll tax purposes, but also for other employer expenses, including unemployment taxes and workers' compensation.