Why do S Corporation owner/employees generally prefer to pay themselves a low salary for services rendered to the entity?
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Why do S Corporation owner/employees generally prefer to pay themselves a low salary for services rendered to the entity?
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- What two alternative tests are applied to a business in order to judge whether it is an employer and therefore subject to the FUTA tax?Owners have no personal liability under which legal business structure? A. a corporation B. a partnership C. a sole proprietorship D. There is liability in every legal business structure.Which of the following factors does the IRS consider irrelevant when determining reasonable compensation for a shareholder-employee of an S corporation? Timing and manner of paying bonuses to key people. Dividend history. Consistent amount of compensation year after year. Compensation agreements.
- What can a business do to prevent an employee from receiving salary in kind?Does the election of one form of management create a difference in the fiduciary duties of members of a limited liability company?What is a shareholder's basis in S corporation stock received for services rendered? - The average fair market value of the S corporation's stock during the time that the services were rendered. - The fair market value of the S corporation's stock at the time of transfer. - The fair market value of the services rendered, as determined by the Bureau of Labor Statistics. - The value of the services rendered, as determined by what the shareholder normally changes.
- Employee benefits are all forms of monetary consideration given by an entity in exchange for services rendered by employees or for the termination of employment True or false?. If a fringe benefit involves a deduction from employee pay, which of the following is true? A. Employers may only offer the benefit to certain classes of employees. B. The employee must enroll in direct deposit for their pay. C. The fringe benefit must be subject to income tax. D. The amount of the deduction must be listed on the employee's pay advice. 2. The ________ determines when benefit amounts should be withheld from employee pay. A. employee B. employer C. IRS D. State in which the business is conductedA business entity that has no ;ax liability because the entity's income is passed through to the owners, who pay taxes on it is O a. 0 b. O c. 0 d. a pass-through entity. a sole proprietorship an entrepreneur. an independent contractor.
- Do those who are unable or unable to operate under a conventional corporation's limitations have a predisposition toward starting their own business? Is there a reason for this or not?Which of the following is true? Exempt corporations can claim the corporate OSD against gross income. The MCIT applies to domestic and resident corporations. Marketing expenses is a direct cost of service of a corporate car-parking operator. Dealers of securities are exempt from improperly accumulated earnings tax.What are the differences in whether a limited liability company is member-managed or manager-managed? Does the election of one form of management create a difference in the fiduciary duties of members of a limited liability company? Explain your answer.
