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@ShoeBox Taxes wrote:

TP takes a W-2 salary, usually significantly more than 60% of the net income of the corp. Many years it's closer to 90%. I've been bugging TP for years, pointing out the whole point of an S-Corp is that you don't have to pay self-employment tax on all of your earnings, but the TP doesn't listen.

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As a side note, the amount of "reasonable compensation" on the W-2 has little to do with the net income of the business and is not determined by a percentage of the net profit.