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working without pay voluntarily

by newbie, Window Shopper

  • Created: March 23, 2010, 6:03 am
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3 comments

My boss (the company president) and his wife are considering taking no paycheck for themselves due to the economic downturn. That means no compensation of any kind whatsoever until things get better. I am the bookkeeper and want to know, are there any legal/tax issues that would need to be addressed

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jimroberts | Creator | 3/23/2010 - 6:03 am

I would consult with a cpa because there may be some great tax benefits and they can use this to their advantage somehow. lose weight fastsun auto salespittsburghonline car auctionscar auctions onlinefree car auction

phanio | Contributor | 3/23/2010 - 6:03 am

Without knowing the ends and outs of your business - it is a hard question to answer. You really should talk to the company's or owners CPA. At first glance, it would not seem like an issue as long as that is all the onwers are doing. if they are delaying their pay or getting compensated in some other way or even loaning their paychecks to the company - then you might have issues. if they are just not taking pay - just less expenses for the company - but, if they are still treated as employees - you will still need to pay unemployment and other mandatory taxes based on what they should be paid. Again, you should really talk with a CPA who is familar with the business and the owners.
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phanio | Contributor | 3/23/2009 - 5:31 pm

Without knowing the ends and outs of your business - it is a hard question to answer. You really should talk to the company's or owners CPA. At first glance, it would not seem like an issue as long as that is all the onwers are doing. if they are delaying their pay or getting compensated in some other way or even loaning their paychecks to the company - then you might have issues. if they are just not taking pay - just less expenses for the company - but, if they are still treated as employees - you will still need to pay unemployment and other mandatory taxes based on what they should be paid. Again, you should really talk with a CPA who is familar with the business and the owners.