Remember if you have an S Corporation that you as owner are also an employee and must pay yourself a reasonable salary. One sure way for the corporate return to get a second look from the IRS is to have nothing on the ‘officer salary’ deduction line on the return. It is wise to always pay yourself some salary out of the coporation and pay payroll taxes. If the IRS looks closely at the return they may determine that much of the profit that isn’t subject to self employment taxes should be wages and subject to payroll taxes.
It is always wise to pay all shareholders a reasonable wage out of the S Corp.