Hi, I’m Amber!

It’s my mission to help you go from just making money – to actually keeping it (and spending it on the things that make your life awesome).

S-Corps and Profit First – Common FAQs

I’m so grateful for our YouTube subscribers!  I truly love when you reach out for clarification or additional information so that I can engage with you more!

Recently, viewer Ashley Woodard commented on one of my previous episodes and asked some important questions pertaining to using the Profit First system when your company is designated as an S-Corp.

Here are the questions I’ll be answering today for Ashley:

– At the end of each quarter, I “reset” my Owners Comp account to an amount equaling the total owner’s salary payments to be made in the upcoming quarter (the rest gets reallocated to the Profit account!).  This was straightforward before I elected S-Corp taxation, as it was just equal to the total amount I wanted to pay myself during that quarter.  Now that I am taxed as an S-Corp, should I just be leaving the “net” salary in there?  Or the full amount (net + employee taxes + employer taxes)?

– Follow on to the above question is whether I should also include 401k contributions (employee)? What about 401k contributions (company match)?

– When I reallocate the funds in my Taxes account each quarter, should I be reimbursing the Owners Comp account? Or myself (and would it be considered a shareholder withdrawal?)?  

– Follow on to the above question is whether some sort of split between employee owed portion and company owed portion should be considered?

 

Resources mentioned:

 

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