Hi all
I'm wondering if anyone has some guidance as far as classifying officer's compensation? I'm a very small S-corp, and I am the only officer. I have no employees. For several years, I have not paid myself anything, but will be starting this year. Are wages or salaries paid as officer's compensation classified differently than an "employee", from an unemployment tax standpoint? As in, would I owe unemployment taxes (I'm in Illinois) on wages I pay myself, since I'm not technically an "employee"? Or am I still considered an employee under the law? If anyone has some insight it would be greatly appreciated!
Thanks,
Timmy

It's better to post as Officer's compensation to avoid the mistakes by the very junior accountants when posting the deductions.

The tax laws require the Officers, shareholders have to pay a fair amount of compensation, and also with these payments, it would help you to deduct medical insurance, write-off assets purchased during the year through Section 179 etc . . .

Hi Songcon,
Thanks so much for your reply! So if I understand you correctly, from a legal standpoint, an officer is still considered an employee and therefore subject to unemployment taxes (along with the regular stuff like FICA). From an accounting standpoint, though, the only difference would be to enter the wages in the "Officer's Compensation" account, rather than the "Wages" account, and the deductions would fall under their normal Accounts, SUI, FICA etc.?
Thanks again,
Timmy

Yes, you are correct on all "counts"