This is so because it can be argued that the S corporation would not generate any revenue without the personal services of its shareholders, and thus the entire amount of S corporation income should be paid out in salary.
The child's salary then helps reduce the total amount of income taxes the parent pays.
The income is lower than her Bank of America salary, there are no benefits and her brother has helped pitch in with day care.
You may also have to pay estimated tax if the amount of income tax being withheld from your salary, pension, or other income is not enough.
FORBES: Taxes From A To Z (2013): A Is For Annualized Income Installment Method
But for the average professional with a stable income, saving six to nine months of your salary in a low yielding account is the equivalent of burying gold in the back yard.
FORBES: Careful: Saving For An Emergency Could Become Its Own Emergency
He decided they needed to keep "committed expenses" at or below 60% of their gross income (their salary before taxes) to come out ahead at the end of the month.
So studies of wage, salary and labor income count this large source of income concentrated among the top income earners in the later years, but not in the earlier years, showing a large increase in inequality and in the incomes of the top earners over the years.
FORBES: The Equality Of Reaganomics, And Fallacious Leftist Dissent
A.--foregone income and tuition--to the prospect of a bigger salary.
As I pointed out here, because of the historically low 15% rate on long term capital gains (compared to a top tax rate of 35% for ordinary income, like salary) the 400 highest income Americans now pay a lower effective federal income tax rate than the merely well paid.
FORBES: A Low Tax Rate That Would Have Made Leona Helmsley Proud
As FORBES has pointed out, this depressed the total salary expense line in the income statement, further diminishing the quality of reported earnings.
As FORBES GLOBAL has pointed out (see "Stock options are not a free lunch, " May 18), this depressed the total salary expense line in the income statement, further diminishing the quality of reported earnings.
By the time you are 67, which is the designated retirement age, you should have saved eight times your salary to replace 85% of your income in retirement.
Each of Benckiser's top 150 executives now receives a cash bonus typically equal to 40% of base salary if the executive meets preset growth goals in areas such as net revenue and operating income.
The personal income of each member of the management team, from board members to middle-level managers, is limited to their salary, incentive bonus and stock dividends provided by the company, with policies to ensure that no one in the company abuses their power for self-serving purposes.
ENGADGET: Huawei 2012 results: $2.5 billion profit, smartphone penetration 'still way too low'
应用推荐