I am currently a payroll employee an S-corp. I am the only shareholder of that S-corp. The S-corp pays me salary and all the payrol taxes associated with it.
Though, the way I understand it is, 1099 contractors are required to pay in as well.
And, neither can get unemployment benefits. I could be wrong about the 1099 situation, though, because I’m not in that situation.
I think brian is right. Because I’m an officer, I can’t make the claim.
brian – I take half salary and half small biz distribution. This allows me to put money into a pre-tax retirement fund (25% of salary) and also is a little less prone to IRS scrutiny.
Since I can’t draw on the unemployment, the premiums I pay are, without a doubt, part of the self-employment tax.
