Impact on Reasonable Compensation for S Corp Shareholder: Employees (Completed)

Date: Tuesday, January 28, 2020
Instructor: Greg White
Begin Time:  12:00pm Pacific Time
1:00pm Mountain Time
2:00pm Central Time
3:00pm Eastern Time
CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

What Is the Optimal Balance of Pay vs. Dividends for S Corp Employee-Shareholders?

Join experienced tax practitioner and instructor Greg White, CPA, as he presents a broad overview of the reasonable compensation rules, including up-to-the-minute changes. This two-hour CPE webinar will include coverage of how the Tax Cuts and Jobs Act (TCJA) affects decision-making in grey areas, and how to determine the optimum amount of compensation (within a reasonable range) for S corporation shareholder-employees. The new tax law presents opportunities and pitfalls that you clients need to be aware of.

Greg will compare S corporations vs. LLCs under the TCJA to help you optimize entity choices and tax planning. You will learn when do S corporations provide greater qualifying business income deductions (20% passthrough deduction) – and when they provide less.

Who Should Attend
CPAs, EAs, and other tax professionals and tax staff who have responsibility for filing Forms 1120S.

Topics Covered

  • Reasonable compensation case law
  • When to pay less compensation to increase the 20% passthrough deduction
  • When to pay a shareholder employee more compensation to increase the 20% passthrough deduction
  • What amount of wages optimizes the 20% passthrough deduction
  • When are S corporations better choices for reducing overall taxes — and when aren't they
  • What is the "cost" of paying less in payroll taxes

Learning Objectives

  • Recognize how determine "reasonable compensation" for S corporation shareholders
  • Identify and apply the reasonable compensation rules in specific settings
  • Describe how to maximize S corporation shareholders' 20% passthrough deduction
  • Identify and apply a formula to determine the optimum amount of wages to maximize the 20% passthrough deduction
  • Recognize how to adjust reasonable compensation (within a reasonable range) to maximize the 20% passthrough deduction

Level
Intermediate

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Participants should have experience in federal income taxation issues including preparation of Forms 1120S.

Advance Preparation
None

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