my spouse and i have an s corp and it's just us. We have no problem meeting a reasonable w2 salary since we maximize 401k and now need to increase for the new tax laws to hit the deduction limitation.
But the question is more about how often do we need to run payroll? Our biz income varies wildly from year to year. We used to wait until Nov/Dec and just pay one big fat bonus check to each of us.
You all think that's still OK? It's a pain to run payroll so trying to minimize how often. Maybe one fixed salary in June for 401k, then a bonus in Dec to maximum or new tax deduction? Do we really have to do monthly?
Love to hear your thoughts on what will avoid troubles in case of an audit.