If the S-Corp owner just runs payroll and pays taxes, but doesn't actually take the salary amount from the the Corporation,
#1) What is the P&L impact? If they take the money, it will be salary expense hence cut taxes.
If they don't take the money out (I think they are hurting themselves) by inflating profits artificially and paying more taxes later.
What is the Balance Sheet Impact?
Is it a) sits in salaries payable b) move to owner's contribution c) If they are also taking draws, will you net against it.
thanks
