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Shawn P Adamo
Shawn P Adamo, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
Category: Finance
Satisfied Customers: 2884
Experience:  CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
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I have a corporation, right now I am an employee (paid via

Customer Question

I have a corporation, right now I am an employee (paid via payroll), this is expensive because of the 10.5% payroll taxes in California. I am the owner and director..
I have kept the payroll cause I like the automatic withholding feature (by ADP)...I would not do withholding otherwise.
My question is: payroll is an expensive way to pay myself...is there another way? given that I am a Director?? if so please include details of what to do or some IRS Publication reference that applies.
Submitted: 2 years ago.
Category: Finance
Expert:  Shawn P Adamo replied 2 years ago.
Hello. My specialty is focusing on YOUR Financial needs. Financial Planner/Business Owner for 20 years. CPA,PFS,QFP,GMMA.
The Director has no "special" ways around payroll taxation. At the end of the day FICA, Medicare, Unemployment, State, Local taxes, etc. always have to be paid.
If there was a loophole everyone who works for themselves or as an independent contractor would be avoiding these taxes and that avoidance would cause a financial issue for the government.
Sorry to be the bearer of bad news.
If you institute a retirement plan, that avoids federal taxation.
I wish I had better options. Please don't shoot the messenger.
I'll offer you a telephone discussion. The average cost of a JA call is 18.00. I will charge you only 5.00.
Expert:  Shawn P Adamo replied 2 years ago.
Please rate my response in order that I can close this question out.
It will cost you nothing extra to do so and will help me greatly.
Thank you so very much in advance.
Expert:  Shawn P Adamo replied 2 years ago.
Please rate me with an OK (at least). It costs you nothing extra and that is how I get paid.