| “1.) Am I considered an Employee of the S-Corp?. If "Yes", should I have to report wages for myself , for 10hours a month?”=============> In principle, an S corp can have no EEs; An S corp may have no EEs in the traditional sense of a person who works for the business but has no ownership stake. However, for tax purposes, any shareholder who performs duties for the business may be treated as a shareholder-EE. The money the shareholder receives in dividends., I mean distributions, may be treated as income and thus create a liability for employer taxes ,i.e., FiCA tax, FUTA tax or etc, even if the S corp has no profit. So, in practice payments to its officers may be classified as wages, with tax implications UNLESS the S corp generates a loss.
“2.) If I assume that I am also an Employee of my S-Corp, How do I pay myself?. 10 hours a month is less than Part Time salary. So I cannot pay myself on an hourly basis. What do I do?”================> UNLESS your Sc orp has profit, it doesn’t need to issue a W2 to you, an EE/SH;however, S corps(as long as it has taxable profit) must pay reasonable compensation to a shareholder-employee in return for services that the EE provides to the corp before non-wage distributions may be made to the shareholder-employee. The amount of reasonable compensation will never exceed the amount received by the shareholder either directly or indirectly.Distributions and other payments by an S corp to a corporate officer must be treated as wages to the extent the amounts are reasonable compensation for the service rendered to the corporation. So, the idea is to pay yourself the lowest possible salary to minimize social security and Medicare taxes. However, net profit is not subject to social security and Medicare taxes. Net profit is subject to federal income taxes on 1040.And net profit increase your basis in AAA acct and your stock basis in the S corp. If you pay yourself too little, a red flag will be raised. If audited, the IRS will claim that part of the profit you took out of the business was really wages and therefore, should be subject to social security and Medicare taxes
“.) Even if it is right to report wages for 10hrs, how do I know how to calculate the hourly rate, As I am not a Professional Investing or Trading Firm employee and I am just a normal common man. Should I use Minimum Illinois Wage Rate per hour?”==============>As mentioned above, reasonable salary" is just that; what is reasonable for your hours of work; 10 hours per month may not justify a large salary .however,this is a hot issue for the IRS today. The amount of salary you pay yourself is factor of many items. Certainly comparable salaries for for comparable work is the best indicator but may not be available. Your role may cross several lines. Besides work for clients you do administrative work for the corporation. You may also do investment/stock mkt annalyses activities or etc. All these factors need to be taken into account. In addition, you are entitled to a reasonable return (distribution) on your investment in the corporation. Is it capital intensive? If so this would indicate a larger distribution than a service oriented business. At the end of the day, I would keep a log of all of your activitites on behalf of the corporation and pay a reasonable wage based on the total of these activities.
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S-Corp: How to report 10hours a Month of Activity? 
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