ThomasM125
Expert Alumni

Get your taxes done using TurboTax

You wouldn't need to redo any payroll taxes in previous years, since you were in compliance based on the tax status of the business when the taxes were filed.

 

As an S corporation you are required to pay a reasonable salary to owners and others who perform services for the company. The IRS normally treats distributions as salary to the extent they are paid from profits and a reasonable salary has not already been reported.

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