1099 CRNA S-Corp Salary: Should It Change Every Year? | Ep. 29
Download MP3π π π π π π π π π π
β
Get your free 1099 CRNA Tax Checkup here: https://crnataxes.kit.com/crna-tax-checkup
βοΈ βοΈ βοΈ βοΈ βοΈ βοΈ βοΈ βοΈ βοΈ βοΈ
If your S-Corp salary was $180,000 last year, should you automatically use $180,000 again this year?
Maybe. But not just because that was your salary last year.
For a 1099 CRNA with an S corporation, reasonable compensation should reflect what is actually happening in your business. Your hours may change. Your responsibilities may change. Your contracts may change. And your business income may change.
In this episode of Money Moves for CRNAs, Randy Larkin, CPA, explains four reasons your S-Corp salary may deserve another look.
In this episode, youβll learn:
- Why last yearβs S-Corp salary may not automatically work this year
- How changes in the number of hours you work can affect reasonable compensation
- Why your duties and responsibilities matter when reviewing salary
- How a new contract or work setting can change the facts behind your salary
- Why a large change in business income may be a reason to review your compensation
- Why reasonable compensation is not simply a percentage of business income
- Why copying another CRNAβs salary may not fit your situation
- Why the goal is a reasonable and supportable salary based on your own facts
You do not necessarily need to change payroll every time something small happens. But when your business changes in a meaningful way, your reasonable compensation deserves another look.
Because a salary that made sense last year may not make sense this year.
If you already have an S corporation but wonder whether there are other parts of your tax setup you may be missing, download the free 1099 CRNA Tax Checkup using the link above.
.
π§ Educational purposes only. Not personalized tax or financial advice.
π§ Educational purposes only. Not personalized tax or financial advice.
Chapters:
00:29 β Should You Use the Same S-Corp Salary Again?
00:47 β Why Your Reasonable Compensation Can Change
01:18 β #1: Your Hours Changed
02:08 β #2: Your Duties and Responsibilities Changed
02:48 β #3: Your Contract or Work Setting Changed
03:33 β #4: Your Business Income Changed
03:55 β Why a Percentage of Income Is Not the Answer
04:27 β The Big Takeaway for 1099 CRNAs
04:58 β 1099 CRNA Tax Checkup
Music licensed from PremiumBeat.com under License #7394047
