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Lowering Salary

Hello my husband and I just opened a small business as an S-Corp. We are paying ourselves a "reasonable" salary however we need to lower it to make the business ends meet. It would still be a reasonable salary, does changing a salary 2 months in raise any red flags as far as the IRS goes ? 

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Lowering Salary


@alexistristin wrote:

...It would still be a reasonable salary, does changing a salary 2 months in raise any red flags as far as the IRS goes ? 


Not really. All that is required is a "reasonable" salary. It does not matter how often the compensation is changed.

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