Hey guys. Love the podcast! Here’s the question: three Partners have equity ownership in at S Corp. The two founding partners have 45% equity each and the most recent partner was given a 10% equity stake to come in and run sales. The two founding members have a salary of $90,000. The 10% equity partner has a salary of $140,000 plus commissions. This company is in growth mode with a plan to sell down the road.
Can the two founding partners limit their reasonable comp to Lower their Social Security and Medicare taxes without having to do the same for the minority owner? Seems like they could lower their pay salaries to maybe 40,000 per year and then bonus out the extra to lower their FICA expense. Please advise.