✅ Tip 1: Pay Yourself a Reasonable Salary

📌 Rule of Thumb: S-Corp owners must pay themselves a fair salary before taking profit distributions.

⚠️ If the IRS thinks your salary is too low, they can:

• Reclassify profits as wages
• Charge back payroll taxes
• Add penalties and interest

👉 Pro Tip: Use a payroll provider like Gusto or ADP to stay compliant.

Gusto referral link – receive a $100 gift card when you sign up and run your first payroll.

ADP referral link – receive up to 6 months of payroll free when you sign up.

🏠 Tip 2: Rethink the Home Office Deduction

It’s tempting to push mortgage interest or property taxes to your S-Corp… but here’s the catch:

• If you already itemize on Schedule A, you’re likely deducting them already.
• Moving them to your S-Corp could shrink your 20% QBID deduction.

✔️ What makes sense: Utilities + home repairs.
❌ What sometimes doesn’t: Shifting mortgage/property taxes.

👉 Pro Tip: Have your accountant compare both methods before claiming.

🏛 Tip 3: Double-Check Your PTE Election

What it is: Some states let S-Corps pay state taxes directly, bypassing the $10k SALT cap.

🚨 But now the new law raised the cap to $40k. That means the PTE election may not help anymore.

👉 Pro Tip: Run the numbers with your advisor before sticking with this election. Use our SALT Estimator to help generate state and local tax deductions under the new law.

📅 Tip 4: Stay Ahead on Taxes

Avoid year-end surprises with these moves:

• ✅ Check your W-4 → mark the “multiple jobs” box if you have multiple household incomes.
• ✅ Budget monthly with tools like our Business Tax Budgeter.
• ✅ Open a separate high-yield savings account just for taxes.

👉 Pro Tip: Always over-budget—better safe than scrambling later.

✅ Takeaway:

S-Corps are powerful, but they’re not a DIY project. Payroll, elections, and deductions are complex and mistakes can cost you.

👉 Bottom Line: Work with a qualified advisor who will guide you year-round.