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Activity Forums Q & A Startups How to tie employee wages to revenue – any ideas?

  • How to tie employee wages to revenue – any ideas?

    updated 3 weeks, 2 days ago 0 Member · 1 Post
  • Charles

    Member
    October 28, 2019 at 11:47 pm

    We’re a small s-corp with three members. All three of us are shareholders, officers, and employees. Because of our s-corp status, we can pay ourselves through a combination of salary and distributions. What we’re trying to figure out, is the best way to do this. So here’s the main issue: we’re trying to calculate and distribute monthly wages as a percentage of monthly revenue, but aren’t sure how best to pay those wages out. We can obviously calculate the percentages ourselves each month and cut checks, but because we don’t want to have to calculate the taxes ourselves, we’d like to find the best way to do this using our payroll service. From what we can tell, the only good option seems to be calculating the pre-tax wages ourselves, setting an arbitrary hourly wage for each of us in our payroll system, and then figuring out how many hours we need to input to make sure each of us gets the amount we’re due. Has anyone else had to deal with this issue, and if so, what solutions did you find?? —- And just to restate — there are no employees in this situation who aren’t also co-owners of the business. – by hq overview BellLaphroaig – –

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