Do You Pay Your Self?

Any Season

You don't need to be on WC if you are an sp or llc, they repealed that last year.

kauser667

Pay myself a payroll check once a month, we are a s-corp. Then pay myself a bonus if the company is good! The sad thing is this year I think some of my employees are making more than me!!!!!!

Two years ago we were a LLC. The tax breaks seam to be better as a s-corp but managing the cash flow and me on a monthly salary makes it tough sometimes as a s corp vs a LLC IMO. Anybody else think that or am I just imagining things

Treeandland

My co. is an S corp. I pay myself when there's money available. Some of it in salary that taxes are taken out of and some as distributions, you can take up to 50% of your compensation in distributions that you don't have to pay SS on but still have to account for taxes on it at the end of the year.

I'm not understanding what Workers comp has to do with how you pay yourself? If you need it you need it, no? What you are paying towards it can be shown through salary and not distributions I guess but that doesn't determine if you need it or not?

Winchester

I haven't paid myself yet. I have only paid myself back from "shareholder loans" so far, since I've spent so much of my own money on the company.

I don't have a lot of need for money right now anyway. Most of my expenses are "business expenses" anyway

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Ryan

Remodel Bud

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smadax

Yes we pay ourselves an hourly rate, same pay period as our employees.

Double-A

WC rates are not based on income or gross sales. They are based on wages paid, be it employees or independent contractors.

As far as not having WC, even if you are a one person show and exempt yourself, there is no way I would hire your company as a subcontractor without it. Nothing against you, or anyone else that decides not to carry, but, my decision is not to up my rates by carrying it for you, or in lieu of your carrying it.

Talk with your agent, he can explain what I mean.

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"My clients’ wishes are the center of my attention." -- David Guido, a contractor in Woodstock, N.Y.
New York Times, July 20, 2006

AtlanticWBConst

To answer this question: We are an S-Corporation. We have WC, but the "owners" have filed WC exemption for themselves.
Again, that should still have nothing to do with how you (an owner) pays yourself.

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- Build Well -

pcplumber

This reminds me of the movie about Bugsy Malone, regarding why the Italians started Las Vegas, and the Jews ended up controlling Vegas. In the movie, they said the Italians hid their money under the carpet, while the Jews paid taxes. Later, when the Jews needed loans, from the banks, they had legitimate tax records, and the Italians did not.

No offense to anyone, intended. I am Italian American. Yes, I write myself a hefty check, every week, the same time I pay my employees. I also write my wife, son, and daughter a paycheck and they don't even work for me. This way, I get to distribute the Social Security benefits, medicare, etc.

I always pay myself first, or I will forget.

Jack

Aggie67

One of our competitors, when they started out 30 years ago or so, they didn't pay themselves a dime for an entire year in the interest of putting the company on a solid footing. Not sure anyone could do that these days without a spouse working with benefits. We've been at this 4-5 years, and there are times we don't take pay because the money comes in the door in surges, because we don't think we should use a line of credit just to pay ourselves. But we pay ourselves a healthy salary, and we have excellent benefits, and fuel and all other expenses are paid for.