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Level 1

Co-Owners S Corp Payroll

Myself and my partner (co-Owner) are an S-Corp. We started an insurance agency from Scratch. Is there a way for us to pay ourselves and withhold taxes so we don't have to owe taxes personally at the end of the year? Also is there a way to do Commission only (we are a starting from nothing and cannot necessarily pay a salary nor pay hourly.. Some months the business could bring in $3,000 and other times $2,600 or more.)?  If So, do we list ourselves under employees and do we fill out a W4. Or is it recommended we place ourselves as 1099 employees?.... Just trying to understand and would love to not personally owe taxes at the end of the year... 

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Community Champion

Co-Owners S Corp Payroll

Working owners of S-corp must be paid  a reasonable wage before any distributions. Sure if you little to no income yet there is no requirement to borrow money just to make payroll. That being said there is no real distinction between hourly, salary, commission, as long as taxes are withheld as would be any employee. In fact if you were in business on 2/15/20 you might qualify for  a PPP forgivable loan to pay your salary for 8 solid weeks. The next round of this opens 10:30 AM Monday

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