The S-Corp Split: How Business Owners Pay Themselves Twice and Skip the 15.3% Tax on Half of It
S-corp owners split pay into a W-2 salary and K-1 distributions, skipping the 15.3% self-employment tax on the distribution half entirely. Watson v. Commissioner shows the IRS reclassifies token sala
Yahoo Finance — 31 July 2026
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S-corp owners split pay into a W-2 salary and K-1 distributions, skipping the 15.3% self-employment tax on the distribution half entirely.
Watson v.
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