How much should I get paid as a reasonable compensation for my S-corp if I am a full time employee and work for my S-Corp on weekends only?

[joe-hanna]

I work full time job and do consulting services under my 100% owned S-corp. I do the work for the S-Corp during the weekends and at night. Is it reasonable to take my hourly rate in my full time job and multiply it by 10 - 16 hours per week to be my reasonable compensation for the S-Corp? Considering that I do the same job for the full time employment as the S-Corp, and the hourly rate is about the national average hourly rate for this job\service.

[Critter]

If you are the only employee of the S-corp and the business income is predominantly from your labors then the wags you are paid should be probably in the 90% range of the income brought in no matter what the average rate for this position is else where. Just because you can make more working for yourself doesn't mean you can avoid SE/FICA taxes by taking an artificially low wage.

However this is not something set in stone ... so pick an amount you could support if audited but also expect to lose if challenged.