S-Corp Reasonable Salary Articles

What Is a Reasonable Salary for an S-Corp Under IRS Rules?

Start with this rule: if you actively work in your S corporation and receive, or are entitled to receive, payment for those services, that compensation is generally treated as wages. For federal employment tax purposes, [corporate officers, including S corporation officers, are employees](https://www.irs.gov/businesses/small-businesses-self-employed/s-corporation-employees-shareholders-and-corporate-officers), and service payments should be handled as wages rather than distributions or shareholder loans.