Prompt · Finance

Salary or Distributions

For S-corp owners: optimizes the salary vs distribution split for tax savings.

Have ready: Fill in net profit, current salary, state

Fill in · 2 fields

Xstate

Your prompt

Optimize my S-corp salary vs distributions split. My numbers:

Net business profit: $[X]/year
Current W-2 salary I pay myself: $[X]
State: [state]
Reasonable salary for my role per market data: $[X]-[X]

Calculate: (1) payroll tax (Social Security + Medicare, both halves) at my current salary, (2) the tax savings of lowering salary to the bottom of the reasonable range and taking the rest as distributions, (3) the audit-risk zone - how low is too low, with the IRS factors for my industry. Recommend a specific salary number and show the annual savings vs my current setup. Note what changes if profit grows 50%.

Paste it into Muse or any assistant. Blank fields stay as [brackets].

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