Reasonable Compensation Planning
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5 Benefits of Reasonable Compensation Planning for you and your Client
- October 1, 2014
- Posted by: RCR Admin Team
- Category: Archived
By Paul S. Hamann & Jack Salewski, CPA, CGMA
Discussing Reasonable Compensation with your clients is a bummer, most of the time. You are trying to corral your client into giving you a number that they have no idea how to calculate. Both of you are tempted to just make something up, but you know that an erroneous number if challenged by the IRS, is just going to be an even bigger bummer. It can also cause your client to pay more payroll taxes than necessary, negatively affect the valuation of their business, or cause a poor choice of entity.
