%0 Journal Article
%T Minimizing Employment Taxes in U.S. ¡°S¡± Corporations: Levels of Compensation and Shareholder Sophistication
%A Andrew M. Brajcich
%A Daniel Lawson
%J International Business Research
%D 2013
%I 
%R 10.5539/ibr.v6n3p1
%X In the U.S., firm owners operating as an S corporation may minimize the incurrence of employment tax by reducing compensation paid to shareholder-employees and increasing the amount of tax-free distributions from the firm. While the U.S. limits a taxpayer¡¯s ability to use this technique, many firm owners are still able to reduce employment tax expense to some degree. Using the U.S. Federal Reserve¡¯s 2003 Survey of Small Business Finances, we find that more sophisticated S corporation owners make use of this tax planning technique than their counterparts operating in C corporations.
%U http://www.ccsenet.org/journal/index.php/ibr/article/view/24212