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    3 Replies Latest reply on Dec 9, 2009 6:58 PM by OutOfMyBox

    Question About Officer Compensation.

    atoninfo Wayfarer

      I registered my S-Corp in Jan 2009 in the state of CA. I've been billing my clients thru my corp and I am drawing a salary for my services from the company. I am the only employee in my corp. My wife is an officer and holds CFO title for my company. I have not paid any compensation to her yet. I am also listed as an officer of the corp and I am holding other titles (CEO, President, etc). My company is using an accountant for all my accounting needs.


      My questions are:
      1. How do I pay a fair compensation to my wife at the end of the year? Do I need to pay any employer taxes for her compensation?
      2. What would be a fair compensation for her? Please note that all daily accounting tasks are done by an accountant.
      3. Do I need to report her as an employee of the corp to EDD?