What's the smartest way to pay yourself as an S Corporation owner? The answer isn't as simple as pulling money from your business account. Miscalculating your salary versus distributions could lead to tax penalties---or even an IRS audit.On this episode of Become Sensible, we're breaking down how to pay yourself as an S Corp owner the right way. Fiona Nguyen explains the tax advantages of S Corporations, how to determine a reasonable salary, and why balancing your salary and distributions is crucial. Plus, we discuss the payroll setup process, quarterly tax planning, and key deadlines that could save you thousands in taxes.ConnectFollow me, Fiona Nguyen, on LinkedIn. Learn more about Balannx.Timestamps2:30 -- The tax advantages of an S Corporation and why it can save you thousands5:00 -- What is self-employment tax, and how does an S Corp help reduce it?8:30 -- Determining a reasonable salary to stay compliant with the IRS12:00 -- Payroll setup: Tools, tax withholdings, and state requirements15:30 -- The importance of tax planning in the last quarter of the year18:00 -- Deadlines: Why March 15 is a critical date for your S Corp20:00 -- Action steps to ensure you pay yourself correctly and maximize tax savings Hosted on Acast. See acast.com/privacy for more information.

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