Payroll Increase for Employees

The 2% tax cut on the Employee portion of Social Security withholdings has expired. That means that employees will see an extra 2% withheld for Social Security this year as compared to last year. Employers are urged to implement the change as soon as possible and are...

Expense Deferral with Related Parties

Expense Deferral with Related Parties Facts Taxpayer is a 10% owner of an accrual basis S-corporation.  The Taxpayer sold inventory to the S-corporation, but plans to defer receipt of income until after year end.  The S-corporation accrued an expense for the receipt...

Reasonable S-Corporation Wage

Tax File Memo Reasonable S-Corporation Wage Facts The taxpayer is a medical professional engaging independently in profit-generating activities within his S-corporation.  The S-corporation does not employ any other individuals, and all cash inflows are related to his...