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See how we’ve helped clients manage their payroll, accounting, and taxes more effectively and efficiently.
Client profile: Multi-partner law firm originally taxed as a partnership.
Challenge: Partners were paying self-employment (SE) tax on their distributive shares and couldn’t pay themselves W-2 wages under the partnership structure.
Status quo (Partnership): All distributive share subject to SE tax; limited flexibility on comp design.
S-Corp strategy: Pay reasonable W-2 wages; treat remaining profits as distributions not subject to SE tax. Coordinate state treatment and payroll implementation to avoid compliance gaps.
After restructuring to an S-Corporation and aligning compensation:
The shift reduced SE tax exposure and created an ongoing structure for managing compensation, retirement contributions, and quarterly cash planning—without changing how the firm serves clients.
We quantify tax impact, retirement options, payroll requirements, and cash-flow timing—then highlight trade-offs in plain English.
We don’t just recommend; we handle elections, payroll setup, retirement plan coordination, and quarterly tax planning.
As numbers change, we re-run scenarios so your structure fits your current reality—not last year’s.
Disclosure: Results vary by state, income mix, deductions/credits, payroll levels, “reasonable compensation,” and retirement plan specifics. Figures shown are client-specific estimates and should not be relied upon as universal outcomes.
See how Fleming Accounting Solutions can help your business save valuable time and money on payroll, accounting services, and taxes.