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What Is Reasonable Compensation?

For small businesses formed as an S Corporation and with plenty of profits, reasonable compensation is a term you may want to be familiar with. Many small businesses have organized as an S Corporation form of entity.  In many cases, the S Corp election allows a business owner to save money on self-employment taxes, especially if they are operating as a sole proprietor.  S Corp profits, or distributions, are not subject to payroll taxes. How Much is reasonable? As a business owner taking Read more [...]
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5 Ways to Streamline Your Payroll Process

For business owners with employers, payroll is a necessary task that can slow your day and tie you down if you let it.  Here are five ideas to make payroll less time-consuming: Employee Onboarding If you hire a lot, empower your new hires by letting them do their paperwork for you.  A good payroll system allows employees to “onboard” themselves, completing the I-9, W-4, and direct deposit authorizations electronically. You’ll still need to ask for ID on their first working day, but at least Read more [...]