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Gator.. true and not true.
It depends on how you work it.
My S-corp is set up so that on paper I receive an annual salary of $200K (amount suggested by my CPA firm to maximize my SS and Fed Withholding deductions along with allowing me to take the maximum contribution to a retirement plan as a business expense). That money is subject to all the normal payroll taxes both employer and employee. The rest of the net income that comes through in a form K-1 is not subject to any self-employment tax. The $200K annual salary comes through on a W-2.
PK
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