If I am the onwer of a C Corporation and receive a salary, am I “employed by others” or “self emplyed”?
Also, would I “own or operate a business that is a primary source of income” or
“own or operate a business in addition to other work”
Thank you
Do you have other work?
No all my work is from this company
I filled this out as employed by others (which is appropriate for salaried income) and the business being a primary source of income (which it is).
Also my take was that a SEP-IRA company contribution is not reportable in these circumstances (although unlike FAFSA you do have to state your current pension balances on the CSS Profile and value your family owned company ownership stake), because it is a non-contributory company paid pension (like a final salary scheme for police and firefighters) not an untaxed deduction from personal income. However, there are various debates you can find online about this issue, so the situation is not completely clear cut.
Maybe this would help?
https://sfs.virginia.edu/sites/sfs.virginia.edu/files/2019-20%20CSS%20Profile%20Comprehensive%20Question%20and%20Instruction%20Listing.pdf
Good question! I always wonder that whenever I fill out an application that asks if I’m self-employed. I’ve decided I’m not since I work for our S corp.
“I’ve decided I’m not since I work for our S corp.”
@MaineLonghorn C corps are very clear cut (salary plus possible dividends), I think S corps are less so since the profits or losses flow to your personal tax return. How do you report the profits on the Profile form as opposed to the salary you draw?
^I never had to fill out the CSS form so I’m not sure how that would be handled. My last kid is a college senior, thank God.
That is always a puzzle for me when forms ask for our salary, since we take owners’ draws, also. I need to ask our CPA, I guess.
If you get a paycheck and a W-2 from your S-corp, you are an employee of the company and that is what you report as your wages. You should be taking a reasonable salary based on your industry unless you enjoy being audited and losing. Distributions are not part of your wages, but they are part of your AGI.