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By distributing profits in the form of dividends rather than salary, an S corporation and its owners can avoid payroll taxes on these amounts. Because of the additional 0.9% Medicare tax on wages in excess of $200,000 ($250,000 for joint filers and $125,000 for married filing...

As the U.S. economy strengthens, don’t be surprised if your best salespeople ask for a raise — and if they don’t receive it, leave for greener pastures. To keep good people, you not only need to offer a compensation plan that acknowledges job market competition but also motivates...

It is generally more tax-efficient to be paid a salary than to receive dividends, given that salary expense is deductible and dividends are paid on an after-tax basis. If the IRS thinks some portion of your salary really should be treated as a distribution of profit, that portion...

Almost all employers who responded to a recent poll by WorldatWork* say they have a compensation philosophy. And about two-thirds of those employers say they have committed it to writing. Trouble is, only 27 percent of them believe that the majority of their workers actually...

Employees generally recognize that you don’t have an unlimited budget for all forms of compensation, including employee benefits. And in recent years most have grown accustomed to the necessity of sharing more of the financial burden of health benefits. So if they can get...