My point was that salaries are an expense taken before companies pay income tax, which was contrary to what the parent post guessed. Reasonable salary guidelines are a completely different matter, and I never meant to…
No, that is not how it works. Your salary is an expense for the company, paid before any corporate tax is paid, and thus reduces corporate tax. A company that has $10MM in revenue, and $10MM in salary expense will pay…
My point was that salaries are an expense taken before companies pay income tax, which was contrary to what the parent post guessed. Reasonable salary guidelines are a completely different matter, and I never meant to…
No, that is not how it works. Your salary is an expense for the company, paid before any corporate tax is paid, and thus reduces corporate tax. A company that has $10MM in revenue, and $10MM in salary expense will pay…