The Benefits of Owning an S-Corp: Social Security Credits
You can get Social Security credits as a W2 Employee!
When you are an active shareholder with a W2 wage through your company you can obtain qualifying Social Security Credits!
The salary needs to be at least $4880 per calendar year, (this changes each year) you can build up your Social Security credits for retirement. An additional requirement is that your salary is reasonable compensation for the job being performed.
“How does this work” you ask? It’s actually very simple.
- Pay yourself reasonable compensation through your corporation or LLC.
- Your income is reported quarterly to the IRS and Social Security
- Your income is reported again annually when you file your Income Tax return.
- If you are in need of qualifying credits (quarters), and we prepare your payroll, we help you make sure that you get your four quarters each year.
In addition to deducting your wage as an expense, you can take advantage of the full benefits of owning an S-Corp
- Deduct Medical Expenses in Your S-Corp
- How you get paid as an owner of an S-Corp
- Define Reasonable Compensation for yourself
- Creating Your 401K Plan for your S-Corp
Take Advantage of These Benefits
We are your team of professionals in small business accounting. Contact our office in Detroit Lakes or Fargo and we can help you get on the right track with Social Security.