Common S Corp Salary/Dividend splits:
60% salary/40% distribution or
50% business income paid in salary/50% dividend
The following formula is used to calculate a reasonable salary:
Reasonable Salary Method=(Experience∗Industry Average Salary)/Hours Worked Per Week
See Also: U.S Bureau of Labor Statistics
See Also: Salary Calculator from Calculator.net
See Also: IRS Paying Yourself
See Also: IRS Non-Profits
See Also: Budget Allocation Averages
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