What Are the Top 7 S Corp Tax Moves to Consider Before Year-End?
December isn’t when you fix S Corp taxes — it’s when you finish them. These 7 moves turn year-end chaos into January calm.
Summary of What This Blog Covers
- 7 S Corp moves that lower taxes and smooth cash
- Projection, salary, accountable plan, fringes, family payroll, timing, retirement
- Paperwork + mini-math so you can execute confidently
1. Run the Q4 Projection
YTD P&L + pipeline → full-year profit, salary paid, safe-harbor gap. Decisions now, not in March.
2. Right-Size Salary
Document reasonable comp memo. Pay final payroll by 12/31. Balance QBI wages vs payroll tax drag.
3. Turn On Accountable Plan
Policy + receipts → tax-free reimbursements for home office, mileage, health premiums.
4. Fix Fringe-Benefit Reporting
Health, HSA, parking — report correctly on W-2 or make tax-free under plan rules.
5. Family Payroll
Spouse/kids on payroll (real duties, reasonable pay) → shift income + fund retirement.
6. Time Income & Expenses
Delay Q1 invoices, prepay 2026 costs (12-month rule), place assets in service for depreciation.
7. Fund Retirement Smartly
Solo 401(k) by 12/31, SEP by extension. Deferrals + employer contribution = big deduction.
Year-End S Corp Checklist (copy-paste)
☐ Q4 projection run
☐ Salary memo + final payroll
☐ Accountable plan adopted
☐ Fringe benefits corrected
☐ Family payroll reviewed
☐ Income delayed / expenses prepaid
☐ Retirement funded
Book Your Year-End Planning Session
Insogna’s licensed CPAs run your Q4 projection, salary memo, accountable-plan template, fringe fixes, family payroll review, timing tactics, and retirement modeling — all before 12/31. Whether you searched “Austin Texas CPA,” “tax accountant near me,” or “tax preparation services near me,” we make January quiet.
Frequently Asked Questions
1) How much salary is “reasonable” for my S Corp?
Market rate for your duties. We run comp data + memo to document it cleanly.
2) Accountable plan — worth the paperwork?
Yes — tax-free reimbursements for expenses you’re already paying = real savings.
3) Can family members really be on payroll?
Yes — real work, reasonable pay, proper withholding. Huge for shifting income + funding retirement.
4) Solo 401(k) deadline vs SEP?
Solo 401(k) setup by 12/31. SEP contributions by extension.
5) Fastest way to avoid January estimate panic?
Finish projection, pick safe harbor, split gap between W-2 withholding + estimate.