So then as a small Sub-S owner (wife and me), I would have to pay FICA and Medicare on the money spent on health care insurance, disability insurance, etc., which you as a W-2 employee do not pay payroll taxes on.
In the end, the payroll tax savings are not that great for a small Sub-S. And as you get older, toward retirement, if you pay yourself too low, you take a big hit on SSA benefit payments (which are based on your latest 40 qtrs).
The biggest bang for the PIA effort is if to can write off a vehicle purchase through a Section 179 deduction, and various other hardware purchases.
In the end, the payroll tax savings are not that great for a small Sub-S. And as you get older, toward retirement, if you pay yourself too low, you take a big hit on SSA benefit payments (which are based on your latest 40 qtrs).
The biggest bang for the PIA effort is if to can write off a vehicle purchase through a Section 179 deduction, and various other hardware purchases.