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Which of the following is an advantage of an owner using the salary method to compensate themselves?
- There is no tax on a salary for a limited liability company or any other pass-through entity.
- The owner may pay themselves a salary in an amount that is substantially below the industry standard.
- Federal and state withholdings are withdrawn automatically from a salary.
- An owner's salary is not impacted by fluctuations in business expenses and earnings.


Sagot :

Answer:

Which of the following is an advantage of an owner using the salary method to compensate themselves?

- There is no tax on a salary for a limited liability company or any other pass-through entity.

- The owner may pay themselves a salary in an amount that is substantially below the industry standard.

- Federal and state withholdings are withdrawn automatically from a salary.

- An owner's salary is not impacted by fluctuations in business expenses and earnings