My spouse and I have an S-corp, but he does not materially participate. I receive W-2 paychecks as an employee. Is he required to receive reasonable pay if he does not participate? Does it matter if he is counted as an "officer" or a "shareholder"? Also, in addition to my W-2 salary, we also take some owner draws. Can I count the draws as his reasonable pay? What section should I report the draws in if he can or cannot take this as his pay?
