Taxpayer is a shareholder in 4 closely-owned S Corporations. Right now he gets paid S corp officer salary from each of the 4 company and they are exceed FICA limit amount.
each of the 4 Scorps will have to pay 7.65% on his entire salary.
My 2 major questions are:
1.How can we set up common paymaster? it doesnt seem like any specific forms have to be submitted to IRS. So taxpayer just does/arranges it to have one of the S corp elected to be the common paymaster?
2. if common paymaster is set up, it means only one S corp will have show officer compensation on page of 1120S and the rest of the 3 will have 0 which will be a red flag..
What's the best way to make this work? Any feedback will be appreciated!