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  3. Study Set
    Taxation for Decision Makers
  4. Exam
    Exam 4: Employee Compensation
  5. Question
    S Corporations Have an Incentive to Pay Unusually Low Salaries
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S Corporations Have an Incentive to Pay Unusually Low Salaries

Question 58

Question 58

True/False

S corporations have an incentive to pay unusually low salaries to an employee-shareholder to avoid FICA taxes.

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