Tag Archives: Payroll

Sick Time (Austin)

It’s not too often that we talk about local/state taxes. With a state income tax, those of us in Texas tend to have it pretty easy. But for those of you keeping up with the news, you may have heard about a new sick leave ordinance that was originally scheduled to go into effect October […]

Reasonable Compensation

C-Corporations. If you pay yourself too much payroll, the IRS may claim that part of the payments should have been dividends. If the auditor reclassifies, it will lead to double taxation. S-Corporations. If you pay yourself too little payroll, the IRS may claim that part of the other payments to yourself should not have been […]

Dollars and Cents

This is hardly exiting news, but apparently the IRS released a memo saying that rounding to the nearest dollar on Form 941 (payroll taxes) is NOT ok.  No big deal, but interesting considering that on income tax returns, you basically have to round to the nearest dollar for everything.  I just have trouble imagining a […]

S-Corp Owner Salaries

I keep hearing that the IRS is continuing to crack down on S-Corp owners that take too low of salaries. For a brief background, as the owner of an S-Corp, you can (should) take a salary for your services. However, one of the benefits of having your small business taxed as an S-Corp (as opposed […]