Corporation XYZ consists of a husband and wife who are shareholders of the corporation. They are officers of the corporation and each get paid a monthly salary for those positions. The corporation has no other employees. When the corporation gets a contract, the husband, who is the president, may work directly on a contract instead of having a contractor do the work. Since the president may work on specific contracts himself, should he be paid for that specific job along with receiving his monthly salary as president. Even though he may be working on a specific contract and actually doing the work, he also does the tasks to fill his position as president at the same time. How should this be handled? If he should receive pay for both jobs, how should he be set up in Quickbooks for payroll to keep the pay separate as officer salary and employee salary so that total wages paid don't exceed the wage base limits for withholding taxes?

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Originally Posted by BHolmes

Corporation XYZ consists of a husband and wife who are shareholders of the corporation. They are officers of the corporation and each get paid a monthly salary for those positions. The corporation has no other employees. When the corporation gets a contract, the husband, who is the president, may work directly on a contract instead of having a contractor do the work. Since the president may work on specific contracts himself, should he be paid for that specific job along with receiving his monthly salary as president. Even though he may be working on a specific contract and actually doing the work, he also does the tasks to fill his position as president at the same time. How should this be handled? If he should receive pay for both jobs, how should he be set up in Quickbooks for payroll to keep the pay separate as officer salary and employee salary so that total wages paid don't exceed the wage base limits for withholding taxes?

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It is assumed president receives an agreed upon salary- if part of his duties are to do job work I believe the salary can be allocated in part to the job and in part to executive comp The part allocated to a job should be costed out to that job to ascertain profit and loss for that endeavor...