Not necessarily. If Im a computer programmer, and the average programmer earns $100,000 a year, but I am able to make $1,000,000... I can take $100,000 in payroll and $900,000 in distribution. I dont necessarily need to cut it 50/50. Thats not fair. Just because I am smart or hardworking and Im able to make $1,000,000 working 40 hours a week, does not mean I am required to pay payroll tax on half of that income.
You pay yourself a payroll that is "reasonable" to the line of work you are in.
Consult with an accountant to get a better understanding. But in no means, if your making $100,000 a year, does $50,000 need to run through payroll. You maybe working 18 hours a day to earn that $100,000 a year. Hope that makes sense.
Also, the original post is about how often you have to pay yourself payroll. Instead of example: $3,000 month payroll, the question is, can I pay myself a 1 time 36,000 payroll at the end of the year or once a year.
Consult an accountant, but I dont see anything wrong with that. You are technically paying all your payroll/taxes in the current year.
