I’m an S corporation owner and I pay myself a $40,000 salary. (I’ve done research, and this is reasonable compensation based on my industry.)
My wife decided to quit her job and give up her employer-provided health insurance, so I need to pay for our health insurance, which should be $10,000 annually.
Do I lower my cash salary to $30,000 due to the $10,000 in health insurance now paid by my S corporation? Or do I continue to pay $40,000 in cash wages and have total taxable wages of $50,000? ... Log in to view full article.