How Small Business Owners Should Pay Themselves (W-2 vs Distributions) With CPA Greg Reid

Описание: How should a small business owner pay themselves—W-2 wages, distributions, or reimbursed expenses?

In this episode of the Empowering Healthy Business Podcast, Cal Wilder is joined by Greg Reid, CPA (Head of Tax at SmartBooks) to break down the most common owner compensation methods for pass-through businesses (S-Corps, LLCs, and partnerships).

They cover how owner pay is taxed, how it should be recorded in your books, and how to avoid the nightmare scenario of owing a large tax bill with no cash set aside to pay it.

What you’ll learn in this episode:

The main ways owners take money out (W-2, distributions, reimbursements)

Why S-Corp owners can take W-2 wages (and partners typically cannot)

Payroll taxes (FICA/Medicare) vs distribution tax treatment

Entity choice: when it may make sense to elect S-Corp status

What “reasonable compensation” means and why the IRS cares

Fringe benefits + reimbursable expenses (home office, etc.)

Book vs tax reporting: how owner pay shows up in financial statements

How to plan for taxes (estimated payments + dedicated tax savings)

Common pitfalls that create tax surprises

#smallbusinesstaxes #OwnerCompensation #SCorp #businessaccounting #taxplanning