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If the Amounts Are Reasonable, Salary Payments to Shareholder-Employees Can

question 71

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If the amounts are reasonable, salary payments to shareholder-employees can reduce or avoid the double taxation result of a C corporation.


Definitions:

Withdrawal

A psychological or physical retreat from a situation, relationship, or obligation.

Progression

Refers to the act of moving forward or advancing towards a more developed state or stage.

Stimulating Performance

The process of encouraging or motivating employees to improve their work output or to perform at a higher standard.

Job Descriptive Index

A survey instrument that measures employees' job satisfaction with various aspects of their job, including the work itself, supervision, pay, co-workers, and opportunities for promotion.

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