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Show JOSEPH H CUBLER JAMES M. WILSON I -j CUBLER & certifiedpubucaccountants ' BOX 1 139 - 360 WEST 200 NORTH A CCfTI A""PC CEDAR CITY, UTAH B4720 REDUCE YOUR SALARY (Make More Money) i y THE: RECORD fil PRESENT A way to save you money and have some fun!!! 2 ways to win! "H FREE TICKETS Each week some lucky reader from Beaver or Iron County will win 2 free tickets to Cedar Cinemas. All you have to do is find your name in the Record classified section. Check it out each week! You could be the luckywinner. DISCOUNT j J COUPON And to help everyone have fun, somewhere in the paper will be a coupon for I a discount good at any theatre Sunday thru Thursday!!! It could be for a certain age group, a certain cer-tain town, or a certain show. Read carefully j I each week there are many ways that you 5 Should be a winner! For those shareholders of subchapter S corporations who are also employees of their corporation, the following computations may ring a familiar bell. Since all of the earnings of a subchapter S corporation (which is taxed somewhat as a partnership) are taxable to the shareholders whether or not they are withdrawn, there is a tendency to take all the earnings out in the form of salary. Consider reducing your salary and taking out the additional corporate earnings as dividends (not subject to payroll taxes). You can save payroll taxes by setting a conservative salary, but not so low as to be unreasonable for your services. The 1981 maximum wage base for Social Security ( FICA) contributions is $29,700 at a rate of 6.65 percent by each the employee and the employer (total 13.3 percent). The wage base and the percentage of contribution have increased over prior years and will i probably continue to do so in the future. The following example is for one employee shareholder; the same concept applies for more than one. Before: Shareholder salary $35,000 FICA (Combined 13.3 percent X $29,700 Maximum) 3,950 After: Shareholder dividends 20,000 Salary - 15,000 FICA (Combined 13.3 percent X $15,000) 1,99! Savings: Reduced FICA taxes $ 1,955 If you reduce your contributions to Social Security to less than the maximum wage base you will, most likely, have reduced your benefits. There are other income tax consequences to be considered before making adjustments to your salary. |