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Yes.  I've read it.  Please point out the part where it says a sole proprietor or person organized as a single member llc can't put herself on payroll.   Keep in mind that same person organized the same way (but choosing to have her single member llc treated as an s corp for tax purposes) can so it's not simply logical, like I can't be both employee and employer, because that's plenty possible.    So where in 31.3401 does it specifically say a person can't be an employee of her single member llc?