Owner-Employee

Owner-Employee

A sole proprietor (self-employed individual) or a partner who owns a more- than-10% capital or profits interest in the partnership.
References in periodicals archive ?
In this way, the company may designate a larger pay-in on behalf of an owner-employee who is closer to retirement.
That is, fringe benefits are deductible by the employer and tax-free to the owner-employee.
Skewing the benefits to the owner-employee is still the safest and second biggest deduction available to businesses with 30 employees or less.
The new owner-employee contract will allow firms to award shares worth up to PS50,000 to their staff in return for the employee giving up unfair dismissal, redundancy and training rights plus being able to ask for flexible working.
The Chancellor of the Exchequer, the Right Honourable George Osborne MP, has today announced plans for a new kind of employment contract called an owner-employee.
An owner-employee may also receive a share of the profits in the form of dividends as compensation for capital inputs.
Supreme Court recently decided a case arising from the bankruptcy of the owner-employee of a corporation that sponsored an employee retirement plan in which the owner participated.
Owner-employees also generally include relatives of an owner-employee and corporations owned by an owner-employee.
The Seventh Circuit characterized the premise of this test as "an investor who is not an employee will not begrudge the owner-employee his high salary if the equity return is satisfactory; the investor will consider the salary reasonable compensation for the owner-employee's contribution to the company's success" (slip op.
This item discusses how reporting a higher wage can actually maximize long-term profits for the owner-employee of an S corporation.