Do these S Corps still have to pay owner-employees a minimal reasonable salary? The short answer is “no”, as long as the S Corp makes no distribution to the owner-employee to avoid payroll taxes. The reality is that the IRS cannot require a business to pay its employees a minimum salary.

What is reasonable compensation for S Corp owner?

In other words, if your S corporation earned $150,000 before shareholder salaries, and you wanted to maximize your 401k contribution, you might pay $150,000 as reasonable officer compensation which would be 100% of your business income.

How to answer ” what are your salary requirements “?

Aim high. In your range, you should include as high of a salary as you can justify based on your education, experience, and skills. The trick is to put your target salary at the bottom of your range. For example, if you’d like to make $50,000, state your range as $50,000-$57,000.

How to determine a reasonable salary for a corporate officer?

Another way to determine a reasonable salary for corporate officers is to look at what other companies of similar size and type pay for such services. Check on websites like The Ladders and Salary.com for comparable positions, or engage the services of a compensation consultant.

What does it mean to have a desired salary?

Now, before we dig into who to answer “what is your desired salary,” let’s talk about what “desired salary” even means. Generally, “desired salary” refers to the dollar amount you’d like to receive in exchange for handling the job’s responsibilities. Essentially, it’s a number that you feel is fair based on what the position involves.

What’s the best salary range to ask an employer?

Even if you start by emphasizing your flexibility, most employers will still want to hear specific numbers. In this case, offer them a range (plus or minus about $10,000-$20,000). This will allow you to remain flexible while still giving the employer a clear answer.